French luxury design house Hermès has reported total sales of €3.36bn ($3.57bn) in the third quarter (Q3) of fiscal 2023 (FY23), up 16% at constant exchange rates.
The group’s consolidated revenue at the end of September 2023 was €10.06bn (10.69bn), up 22% and 17% at constant exchange rates and current exchange rates respectively.
Driven by the strong desirability of the collections and the expansion of its exclusive distribution network, Hermès’ store activity grew 22% in Q3 FY23, while wholesale activities increased 23%.
Hermès delivered solid performance across all geographical areas with sales growth greater than 20%.
Sales in Asia excluding Japan rose by 21% in Q3 FY23, with robust performance in Greater China, Thailand, Australia, Singapore and Korea. In Japan, sales increased 25% over the quarter.
The Americas registered 20% sales growth in the same quarter, while in Europe excluding France sales rose by 20%.
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The company’s leather goods and saddlery business line posted sales growth of 19% and its perfume and beauty business delivered 8% sales growth.
The ready-to-wear and accessories business line also delivered strong performance. with sales up by 29%.
Hermès executive chairman Axel Dumas stated: “The solid performance in the third quarter reflects the desirability of our collections all over the world, with still a sustained momentum in Asia and in the Americas. More than ever, in an uncertain global environment, we are reinforcing our investments and our teams to support growth.”
In the first half of 2023, the company recorded an operating income of €2.947bn and a net profit – group share of €2.226bn.