Luxury giant Hermès reported a strong start to the year with a 17% jump in sales for the first quarter, exceeding analyst expectations. Sales reached €3.8 billion ($4.1 billion) at constant exchange rates.
The company's stock price initially rose but closed flat. However, Hermès shares are still up nearly 25% for the year, outperforming rivals LVMH and Kering.
Hermès' focus on high-end clientele seems to be paying off in a tough market for luxury goods. While Gucci, owned by Kering, faces challenges, Hermès thrives.
Sales in Asia Pacific, excluding Japan, a key market for Hermès, grew by 14%. The leather goods and saddlery division, a major source of revenue, saw a 20% increase, both exceeding expectations.
Hermès did experience a slight dip in customer traffic for more affordable items like silk scarves in Greater China after the Lunar New Year. However, CFO Eric du Halgouet reassured investors, stating this was offset by increased spending on pricier leather goods, clothing, and jewelry. Sales growth was also solid in the perfume & beauty and silk divisions.
The company's stock price initially rose but closed flat. However, Hermès shares are still up nearly 25% for the year, outperforming rivals LVMH and Kering.
Hermès' focus on high-end clientele seems to be paying off in a tough market for luxury goods. While Gucci, owned by Kering, faces challenges, Hermès thrives.
Sales in Asia Pacific, excluding Japan, a key market for Hermès, grew by 14%. The leather goods and saddlery division, a major source of revenue, saw a 20% increase, both exceeding expectations.
Hermès did experience a slight dip in customer traffic for more affordable items like silk scarves in Greater China after the Lunar New Year. However, CFO Eric du Halgouet reassured investors, stating this was offset by increased spending on pricier leather goods, clothing, and jewelry. Sales growth was also solid in the perfume & beauty and silk divisions.