Finance

Strong Asia growth powers Hermes sales in Q1 By Reuters

© Reuters. The logo of French luxury group Hermes is seen in Zurich

MILAN (Reuters) – Sales at Birkin bag maker Hermes soared 44% in the first quarter, powered by strong growth in Asia, where revenues nearly doubled from a year earlier as COVID-19 restrictions eased and shops reopened.

The French luxury group, which has weathered the coronavirus pandemic better than rivals, said revenues at constant exchange rates came in at 2.08 billion euros ($2.50 billion) in the three months to March, beating analyst expectations for a 24% increase.

Sales in Asia excluding Japan surged 94% over the period, with growth in China especially significant. That, coupled with a rebound in the United States where sales grew by 24% helped the group more than offset a decline in sales in Europe due to a new round of coronavirus lockdowns.

Eric du Halgouët, Executive Vice President for Finance at the group, told reporters the sales growth in the quarter was not driven by a big increase in prices, as the group had nudged prices up by just 1.4% so far this year.

He said online sales had increased by 100% or more in all regions, and would likely soon exceed 1 billion euros.

The group’s strong first quarter – with sales up 33% from their 2019 levels – adds to signs of a comeback for the luxury goods sector, with rivals LVMH and Kering (PA:) also reporting a surge in revenues.

However du Halgouët said it was too early to predict that the industry would put the coronavirus crisis squarely behind it this year, pointing to fresh concerns about a possible resurgence of the virus in Japan.

($1 = 0.8309 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button