Hermès records a robust growth

In 2018, the Group’s consolidated revenue reached €5,966 million, up +10% at constant exchange rates.

After accounting for the negative currency impact, growth was +7.5% at current exchange rates. This growth is particularly healthy, being based mainly on volume.

Growth in the fourth quarter was very robust (+10% at constant exchange rates). The significant rise in revenues recorded in 2018 in Group stores (+11%) was driven by growth in all geographical areas. Hermès continued to improve the quality of its distribution network, both by opening stores in locations that highlight the profusion of our creations and by completing renovation and extension work on almost 20 stores. Hermès successfully continued the roll-out of its new digital platform in Europe and in China in October.

Asia excluding Japan (+14%) pursued its strong growth in China and in South Asian countries. The region particularly extended and renovated the Shanghai IFC and Singapore Marina Bay Sands stores, after opening the Landmark Prince’s in Hong Kong at the beginning of the year, Changsha and Xi’an in China, as well as Chadstone in Australia. Japan (+8%) recorded a sustained increase with no price or scope effects. America (+12%) confirmed its momentum throughout the area. The 34th store in the United States opened in May in Palo Alto, in the heart of Silicon Valley; the Cancun store in March; and the Mexico Artz Pedregal in December. Europe excluding France (+8%) achieved a sound performance, driven in particular by the United Kingdom and Italy. France (+6%) posted growth, despite the negative impact of year-end events. The Parisian store on Avenue George V, now covering three floors, re-opened in November after renovation and extension.

All business lines recorded growth, including remarkable performance by the Ready-to-Wear and Accessories division. The Watches business line (+10%) recorded good sales performance in group’s stores, that reflects the creativity of the collections. The presentation of the Hermès’ new women’s watch Galop d’Hermès and the Arceau L’heure de la lune watch at the Salon International de la Haute Horlogerie (SIHH) in Geneva last January was very well received.

In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the Group confirms an ambitious goal for revenue growth at constant exchange rates.

February 28, 2019