Hermes Totaled Sales of $3 Billion in Q1 of 2021 up 33%
- Chaileedo Press
- Apr 16, 2022
- 3 min read
French luxury design house Hermès achieved its sales of $3 billion, up 33% at current exchange rates and 27% at constant exchange rates. Eric du Halgouet, executive vice president of finance at Hermès, said on an analyst call that the China market started the fiscal year 2022 strongly, but has been closed since early March due to the restriction policy but still optimistic to Chinese Market.
French luxury design house Hermès announced on April 14 its financial results for the first quarter of the fiscal year 2022 (ended March 31): sales totaled $3 billion, up 33% at current exchange rates and 27% at constant exchange rates, significantly higher than the 15% organic growth expected by the industry.
Axel Dumas, Chief Executive Officer of Hermès, said: "The strong sales growth at the start of fiscal 2022 reflects strong consumer demand for Hermès products, while they demonstrate strong confidence in the craftsmanship and responsible operation of the brand. Despite the uncertainty of the external environment, the Group will accelerate its strategic investments, hiring and training efforts to support growth."
In terms of region, Hermès achieved strong growth in all regions in the first quarter, with its store sales up 28% year-on-year. Eric du Halgouet, executive vice president of finance at Hermès, said on an analyst call that the China market started the fiscal year 2022 strongly, but has been closed since early March due to the restriction policy, which included three stores in Shanghai. He said, "We are confident in the reopening of the three stores in Shanghai, and the fundamentals of the China market are very impressive anyway." Since mid-March, stores have been closing in Greater China (particularly in Shanghai and Shenyang) due to anti-epidemic policies. January and February saw the reopening of the Pacific Place in Hong Kong and the One Center in Macau after renovations. At the end of March, Hermès opened its first new store in Zhengzhou, Henan Province, China.
In terms of division, sales in the Fragrance and Beauty segment were $129 million, up 20% at current exchange rates.
It is reported that Hermès was founded in 1837 in Paris, France, is a French luxury brand, known in the early years of the manufacture of high-class harnesses in Paris, France, and later launched bags, clothing, silk scarves, perfume, enamel, accessories and home furnishings. In 2020, it launch beauty products. Hermès launched its new beauty division in Paris on February 5, 2020.
Axel Dumas, CEO of Hermès Group, has said: "In the long term, Hermès must enter the beauty segment, including cosmetics, fragrances, and personal care products. This could provide Hermès with sufficient channels and opportunities for distribution."
On July 8, 2021, the Hermès Rouge Hermès lip-makeup collection was officially released in the Chinese market and went on sale in the brand's offline boutiques as well as official platforms such as the official website, WeChat mini program and Tmall flagship store. Hermès lipsticks are available in 2 series, matte and satin, in a total of 24 shades. Also lip brushes, lip balms and lip liners are available.
It is understood that in Hermes perfume and beauty official flagship store on the Chinese e-commerce platform Taobao, the Hermes lipstick series has a total of 10 SKUs, the highest sales for Rouge Hermès lipstick, priced at $86.3, selected for the Tmall hot list of more than 300 yuan lipstick and ranked 14, ranking according to the previous day up one (as of April 15, 2022). The first place on the list is YSL THE SLIM MATTE LIPSTICK. At the beginning of the Year of the Tiger in the lunar calendar of China in 2022, Hermès Beauty, designed exclusively for Chinese consumers, launched a limited edition collector's edition Rouge Grenade No. 77 Satin Lipstick, choosing to pay tribute to China with this color and offering a beautiful symbolism.
In March 2022, the Hermès beauty line launched a new facial foundation collection, Plein Air, which includes four types of products: foundation, loose powder and loose powder brush including 12 shades of foundation. According to the Hermes global website, the current price range of its products is about $400-$1,400. This series is not yet available in the Chinese market. Previously, Luc Hennard, CEO of Hermes Greater China, said in a media interview that the lip makeup series is also on sale in China more than a year later than in Europe due to the time required for process procedures such as obtaining licenses.
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