Hermes Reports Rise In Sales

[stylegurrl]

Hermes Canters Ahead in 2nd Quarter: Sales Up 19 Percent

August 10, 2004 - Paris

Hermes has jumped right over the current economic doldrums, scoring an impressive 19 percent leap in sales in the second quarter of this year.

Powered on by strong turnover in its core businesses of leather goods and silks, Hermes International sales cantered to 306 million Euros in sales in the second quarter, or $373 million at current exchange rates. The growth marked an increase in business of over $50 million in just one quarter.

The news marked the latest bullish figures from the luxury goods industry, which has revived far more rapidly than the mass distribution sector in the current jobless recovery.

Internationally, the fastest growth was in Asia, outside of Japan, where turnover screamed ahead 43 percent to 50 million Euros.

In the Americas, sales improved 25 percent to 42 million euros; in France, they grew 15 percent to 62 million euros; and in the rest of Europe, business advanced 23 percent to 52 million euros.

However, Hermes management was keen to dampen down any exaggerated enthusiasm, and included a earning in its news release that profits could be flat in 2004. The cool prediction was based on expectations of negative currency movements and heavy future advertising costs, expected to surge by more than 40 percent.

Hermès attributed the steep rise in its ad spend to new product launches, primarily in fragrances.

The one downside in the news was the modest rise in sales of ready-to-wear, which had been expected to surge as the first collection for Hermes by its new creative director Jean Paul Gaultier reached retail shelves. Moreover, as the price point of the new Gaultier-designed collection was understood to be significantly higher than that of his predecessor Martin Margiela, there is some speculation that rtw sales may actually have declined.

Looking at the first six months of 2004, Hermes group sales rose 13 percent to 620 million euros, or $756 million.

Hermes closed at 157.70 Euros on the Paris Bourse Tuesday, up1.35 for the day and up 29.69 percent over the past twelve months. Like we said, cantering ahead.

 

[mikeijames]

is it any surprise?

 

[faust]

Quality. Heritage. Craftmanship. I'll take it.

 

[hermes_lemming]

The SAs told me about this. They expect bigger handbag shipments due to the increase in sales. We'll see...

 

[Andro]

$80'000 for a birkin! I hope I never become that shalow

 

[mdankwah]

quality speaks for itself

 

[Lena]

so Margiela sold better than Gaultier.. hmmm just what i thought
thanks for bringing this in stylegurrl

 

[tott]

Well, Margiela is so much more suited to Hermès!

 

[softgrey]

i really did like it so much better when margiela was there...

OT-great to see you tott...!!!...
what a treat...you and kit ....

 

[Lena]

Well, Margiela is so much more suited to Hermès!

tott, missed you lots

 

[tott]

Missed you too, Lena! And softie and everyone else, of course!

I've been extremely busy engineering a huge piece of software for months and months, but it's finally done... It's been stressful in many ways, mainly because I haven't been able to plan anything. Not even knowing in what country I would be living in at times!

Anyway, to keep this slightly on-topic, the staff at Hermès in Munich is really nice! Chatty but not pushy, like it should be...

 

[faust]

Softie and Lena are poets

 

[Benn98]

Hermès Sells $2.7 Million at Guangzhou Store in One Day

• Gemma A. Williams
• April 14, 2020

Luxury titan Hermès reopened its Guangzhou store this week, racking in $2.7 million sales in one day, as originally reported by WWD. Located in China’s Guangdong province, the store had reportedly received a shipment of rare Hermès products, which tempted Chinese influencers and luxury consumers alike out of their homes to spend. The staggering amount is a positive indicator that Chinese consumers are ready to start purchasing again — if the product is right. As one of the most desirable luxury brands in the world, Hermès appears to be a mainland favorite, with buyers ready to purchase what the brand has to offer.

The Jing Take

Data from the online marketplace, Baghunter, recently suggested that collecting the brand’s coveted Birkin bag could bring more stability — and profit — than investing in gold. The average value of the bankable Birkin has increased by 14% over the past 35 years: It is now considered a financial asset that experiences the least volatility. Throughout COVID-19, reports flagged that the secondary market price of an Hermès Birkin bag went up during the crisis, while the value of a Rolex watch, for example, dropped. The verdict? Forget gold and put your money in Birkins.

Jing Daily

 

[helmutnotdead]

Gross.

 

[jeanclaude]

People buying toilet paper like crazy...when they should have been buying Birkins like crazy (but I just hope they don´t use the bags for the same purpose as the toilet paper)...

 

[Lola701]

And the value of the Birkin will raise even more because of the shut down here in France and the waiting list it will cause after....
But, making 2 millions a day does not mean that Hermès won’t be impacted by what’s going on. Maybe they are, like Chanel, more protected but the crisis will still hit them.

 

[SophiaVB]

There was a WSJ article circulating a month or two ago regarding the secondary value increasing being an indication that Hermes is not producing enough for demand. In the past, that worked well for them in terms of word of mouth exclusivity but now that there's an accessible secondary market, they're just leaving sales.

 

[LostInNJ]

There was a WSJ article circulating a month or two ago regarding the secondary value increasing being an indication that Hermes is not producing enough for demand. In the past, that worked well for them in terms of word of mouth exclusivity but now that there's an accessible secondary market, they're just leaving sales.

Did it mention what type of products that's on? Something like a Birkin, which is made to order, are they limiting how many they will make in a year or is it on items that are readily available at the shop? On one hand, it could be viewed as not being "wasteful" in terms of overproduction.

 

[kasper!]

Hermès Sells $2.7 Million at Guangzhou Store in One Day

• Gemma A. Williams
• April 14, 2020

Luxury titan Hermès reopened its Guangzhou store this week, racking in $2.7 million sales in one day, as originally reported by WWD. Located in China’s Guangdong province, the store had reportedly received a shipment of rare Hermès products, which tempted Chinese influencers and luxury consumers alike out of their homes to spend. The staggering amount is a positive indicator that Chinese consumers are ready to start purchasing again — if the product is right. As one of the most desirable luxury brands in the world, Hermès appears to be a mainland favorite, with buyers ready to purchase what the brand has to offer.

They are closing another store in the same city and this one has moved to core part of the most hign-end mall in GZ (to replace Prada). The mall has been almost empty since the end of January. I am pretty sure this number is normal for them.....

 

[Creative]

They had many Special order waiting. Two bags for more than 170.000€. And normally an average Flagship makes around 1M or more. Also, I'm sure they are counting the sales of the past months that normally they must have on stand by (could be several thousands).

Many people from the business area see it as a miracle but it's actually not.