China, online channel and bags are the factors driving the brend growth: in fact, Hermès enjoys recovery in the third quarter of the year. In other words, the French fashion house is going up again. Despite its being cautious about short-term outlook, they are quite confident about mid-term trend. “Our performance is going to enable us to keep investing and creating, subsequently, new jobs”, commented executive president Axel Dumas (in the box).
Hermès enjoys recovery
In the third quarter of the year, Hermès sales increased by 4.2% at current rates of exchange (+7% at fixed rates of exchange), therefore reaching 1.8 billion euros. China’s retail new recovery is driving such positive trend. Likewise, the online sale channel is gaining momentum simultaneously. As a result, earnings made by the Maroquinerie Sellerie division (which specializes in the manufacturing of bags, horse riding articles, agendas and small leather goods) turned out to rise by 8%. As for apparel and other accessories (such as belts, pieces of jewellery, gloves, hats and shoes), they have increased by 7%. Over the first 9 months of the year, consolidated revenues amounted to 4.288 billion euros, therefore dropping by 14%, both at current and fixed rates of exchange.
October is running positive as well
While making public their data and figures, Hermès stressed the fact that, after enjoying a positive recovery in the third quarter, such good trend kept up in October as well. It was mostly driven by one more business boost not only in Asia, but also in the other areas where anti-Coronavirus restrictions have been to some extent lifted. Eric du Halgoüet, Chief Financial Officer of the fashion brand (mentioned by Reuters), has remarked that the online sale channel has now become “the largest store”.
In fact, its takings exceed earnings made by any other boutique. As a matter of fact, online sales have been rising by nearly 100% in all areas from January until September 2020. “We are planning to progressively augment our supply for online articles, except for our iconic products, such as Birkin”, pointed out du Halgoüet. As regards outlook for 2020 financial year, Hermès opts for an extremely prudential strategy. In fact, it is still “difficult to assess the effects of the pandemic as crisis repercussions, duration and geographical extension keep evolving every single day”.
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