Hermès announces exceptional results

This increase is up 33% at constant exchange rates compared to 2019, both in the first and second quarters. Recurring operating income amounted to €1,722 million (41% of sales) at the end of June. Net income group share reached €1,174 million (28% of sales).

The sales increase in the second quarter (+127% at constant exchange rates and +119% at current exchange rates) reflected the strong sales momentum, maintaining the momentum of the first quarter.

For the first half of 2021, thanks to the continuation of the first-quarter trends, all the geographical areas confirmed their strong growth with an acceleration in America and recovery in Europe. Sales in the group’s stores increased by 81% at constant exchange rates compared to last year, and by 41% compared to 2019. The network continued to develop with store openings and extensions, and with growing online sales worldwide. Wholesale activities bounced back (+46%) but were still notably penalised by travel retail.

Sales in Asia excluding Japan (+87% and +70% over two years) benefitted from a strong dynamic throughout the area. They were driven by the strong performance in Greater China and by the acceleration in sales in Singapore and in Thailand, despite new restrictions in some countries in the second quarter. A store opened in Macau in April, and the China World store in Beijing and the store in Brisbane in Australia reopened after renovation and extension. The first HermèsFit event playing with Hermès fashion accessories took place in Chengdu in China in June.

Japan (+59% and +22% over two years) achieved outstanding performance thanks to the loyalty of local customers, despite new measures introduced as a result of the public health state of emergency. The new Omotesando store in Tokyo confirmed its success after opening in February.

Americas (+115% and +25% over two years) accelerated in the second quarter (+35% compared to the same period in 2019), despite local constraints. In June, another store was opened in Troy, near Detroit, an area brimming with history.

Europe excluding France (+52% and -3% over two years) and France (+35% and -16% over two years) are still penalised by restrictions in certain countries and reduced tourist flows, although partly offset by the loyalty of local customers and growth in online sales. After being renovated and extended, the store in Zurich reopened in May, in a listed building at the heart of the city’s cultural and financial district.

At the end of June 2021, all the business lines confirmed their growth, with a remarkable increase in the Ready-to-Wear and Accessories division, Watches and Other Hermès Business Lines (Jewellery and Homeware).

Sales in the Leather Goods and Saddlery division (+63% and +25% over two years) performed well, after being driven by the significant deliveries made at the end of 2020. Demand was sustained, both for re-invented classics and new models. The Ready-to-Wear and Accessories division (+98% and +40% over two years) pursued its dynamic growth, thanks to the success of the ready-to-wear and fashion accessories collections. The women’s and men’s ready-to-wear collection were unveiled both online and in person respectively in March at the Garde républicaine and in June at the Mobilier national in Paris. The Silk and Textiles business line (+72% and +6% over two years) posted strong growth thanks to the diversity of the creations, materials and formats which are very successful with customers. A new innovative printing line has been inaugurated as part of the development of the site near Lyon. Perfume and Beauty (+65% and +17% over two years) posted growth, thanks to the success of the new men’s perfume H24. The Watches business line (+121% and +80% over two years) confirmed its excellent performance, reflecting the technical watchmaking expertise and creativity of the collections, with the success of the new Hermès H08 men’s watch, featuring a geometrical and sporty design. The Other Hermès business lines (+100% and +92% over two years) confirmed their momentum, thanks to Homeware and Jewellery.

After a first half of 2020 marked by the closure of stores and production sites, a period during which the group maintained the jobs and basic salaries of its employees worldwide, the first half of 2021 benefited from the sharp rebound in sales and from a particularly high inventory flow rate.

The Hermès Group continued to recruit and added nearly 400 people to its workforce in the first half of the year. At the end of June 2021, it employed 16,966 people, including 10,607 in France.

For 2021, the impacts of the Covid-19 pandemic are still difficult to assess. The highly integrated artisanal model and balanced distribution network, as well as the creativity of the collections and the customers’ loyalty, give the Group confidence in the future.

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

August 12, 2021