Robust Asia Development Powers Hermes Gross sales in Q1
The French luxurious group, which has weathered the coronavirus pandemic higher than rivals, stated revenues at fixed change charges got here in at 2.08 billion euros ($2.50 billion) within the three months to March, beating analyst expectations for a 24% improve.
Gross sales in Asia excluding Japan surged 94% over the interval, with progress in China particularly important. That, coupled with a rebound in the US the place gross sales grew by 24% helped the group greater than offset a decline in gross sales in Europe because of a brand new spherical of coronavirus lockdowns.
Eric du Halgouët, Govt Vice President for Finance on the group, advised reporters the gross sales progress within the quarter was not pushed by a giant improve in costs, because the group had nudged costs up by simply 1.4% to this point this yr.
He stated on-line gross sales had elevated by 100% or extra in all areas, and would doubtless quickly exceed 1 billion euros.
The group’s robust first quarter – with gross sales up 33% from their 2019 ranges – provides to indicators of a comeback for the posh items sector, with rivals LVMH and Kering additionally reporting a surge in revenues.
Nonetheless du Halgouët stated it was too early to foretell that the trade would put the coronavirus disaster squarely behind it this yr, pointing to contemporary issues a couple of attainable resurgence of the virus in Japan.
(Reporting by Silvia Aloisi; modifying by Agnieszka Flak)