Hermès sales are also on the rise

Sales in the luxury market continue to soar, despite the geopolitical and economic crisis, and rising retail prices. Just yesterday we told you about LVMH, the group of newly-elected richest man in the world Bernard Arnault which is touching impressive records, on the stock exchange as well as in its own stores. This trend was confirmed by Hermès too which just today showed its first-quarter results for 2023 exhibiting growth of 23%, or €3.38 billion. According to CEO Axel Dumas, this success was achieved thanks to the brand's focus on local craftsmanship and «the loyalty of our customers,» but figures reveal that, in truth, it was a series of unexpected circumstances that turned Hermès's fortunes around, creating favorable conditions for the brand to attract new audiences: the perfect storm. 

First among the causes that have positively affected Maison's sales is certainly the rebirth of tourism. After years of strict limiting regulations, it is finally possible to travel and, as a yo-yo effect, the tourist market is expanding rapidly (an increase of 26%), thus also influencing the luxury market. In Japan, it was local customers who boosted sales (+26%), while in Europe (+21%) - particularly in France (+28%), Italy, and the UK - the credit falls on international tourists. The only geographical area that did not surprise forecasts, which had anticipated a 16% growth for Hermès, was America, with a result up just under 19%. Following on from this, retail price increases - up by up to 10% over the past year - have been instrumental in sparking the interest of the wealthy in designer products, previously overly popular and studded with logos, now seemingly more "quiet" and inaccessible. Getting on the waiting list for a Birkin, after all, is almost impossible unless you can first spend thousands of dollars in one of the Hermès boutiques. 

Although growth affected all sectors of the Maison, such as leather goods and saddlery, which increased by 18.5%, and ready-to-wear, which climbed 34% to €950 million, the watch division particularly shattered expectations. Sales of Hermès signature wrist jewelry, in particular the H08 line, Arceau, and Le temps voyageur, brought the brand 25% more revenue than in the previous quarter, clearly indicating the sector's recent rediscovery of popularity. To capture this expansive wave of interest from its customers, Hermès is expanding its production network, having just a few days ago inaugurated a leather goods factory in Louviers, France, and planning to open four new sites over the next two years. «The first quarter of 2023 is in line with the good results of 2022,» Dumas explained in a press release, «we are proud to strengthen our production capacities and consolidate our artisanal model.»