After Louis Vuitton, Hermes has reported an increase in first-quarter sales that beat expectations
After Louis Vuitton, Hermes has reported an increase in first-quarter sales that beat expectations.
The rise is because of the return of Chinese shoppers after the country ended its covid restrictions, said an AFP report. The handbag maker group said revenues soared 22 percent to 3.4 billion euros ($3.7 billion) in the period from January to March following a record in 2022, the report added.
“The first quarter of 2023 is a continuation of the good results of 2022,” Hermes chief executive Axel Dumas said in a statement.
The performance was driven by strong sales, especially in Asia, with the exception of Japan, thanks to a “very good Chinese New Year,” the group said. “Throughout Greater China we have strong growth rates and very vigorous traffic,” chief financial officer Eric du Halgouet said during a conference call, pointing to a “very good performance” in Hong Kong and Macau.
Also read: Why demand for luxury goods is rising again
China is the world’s second biggest economy and a major market for the luxury sector, ended nearly three years of covid restrictions in December, stated the AFP report.
Earlier this week, LVMH, Europe’s most valuable company, said its sales have soared thanks to the return of Chinese shoppers.
Organic sales at the group’s biggest unit, which sells fashion and leather goods, rose 18% in the first quarter, LVMH said in a statement. That’s almost twice the gain that analysts were expecting from the brand. Demand is increasing again in every region, adds a Bloomberg report.
Japan saw the strongest quarterly growth in the first quarter, rising 34% on an organic basis, followed by a 24% uplift in Europe and a 14% jump in Asia outside Japan.
The demand for rare sneakers is also booming. A pair of sneakers, worn by Michael Jordan during the 1998 NBA Finals, recently fetched a record $2.2 million at an auction, making them the most valuable sneakers ever sold.
Also read: Will Reliance’s entry prove to be a turning point for the Indian beauty industry?
