Hermes reports 13 percent 2013 sales growth
For the full year 2013, French luxury maison Hermès reports a 13.0% rise at constant exchange rates, totalling €3,754.8 million. After adjusting for the negative impact of currencies, primarily due to the weakness of the Yen, the rise is 7.8%. In the fourth quarter, growth remained strong (+11.0% at constant exchange rates) despite a particularly high basis for comparison.
All regions contributed to the growth: non-Japan Asia (+16%) and America (+14%) were particularly dynamic. Japan (+7%) posted a very good performance. Europe (+12%) saw sustained activity in all countries despite a difficult financial climate.
The annual revenue generated by the group’s own stores rose by 13%. Hermès continued to qualitatively expand its distribution network with the launch of boutiques in Beverly Hills (USA), Ningbo (China) and Nagoya Mitsukoshi (Japan). In Italy, Hermès successfully opened its new store in Milan, which is located on the famous Via Montenapoleone. At the end of the year, the outlet in Hangzhou, China, was opened following extension and renovation.
With the exception of watches which reported a modest 1% sales increase in 2013 due to slow down in China, all the other product categories of maison Hermes registered growth in 2013: leather & saddlery (+9%), ready-to-wear and accessories (+18%), silk & textiles (+12%), perfumes (+15%).
Hermes also announced it has increased the price of its luxury goods in Japan by 10 percent this month to counter the yen’s weakness. The price increase is the most significant in two years, as Hermes had barely lifted prices in Japan in 2013 even though the euro gained 26 percent against the yen last year.