Hermes International SCA said Friday that sales momentum continued into the first part of the year, propelled by increased tourism and new stores.
Thank you for reading this post, don't forget to subscribe!The French luxury fashion house
RMS,
maker of Birkin handbags, booked sales of 3.38 billion euros ($3.73 billion) in the first quarter, rising 23% at constant currency from EUR2.77 billion in the same period last year. The pace of growth was the same as in the last quarter of 2022.
Analysts had forecast quarterly sales of EUR3.17 billion, according to a poll of esimates compiled by FactSet.
Hermes, which had been less affected than luxury peers by China’s now-ended pandemic restrictions, reported continued momentum in Asia, thanks to a good Lunar New Year and the opening of a new store in the Chinese city of Nanjing. Similarly, sales in the U.S. were spurred by the opening of the group’s 40th store in the country at Naples in the state of Florida.
In Europe, sales were boosted by greater tourism flows, notably in France, Italy and the U.K., Hermes said.
Wholesale revenue rose 26% on year, aided by the recovery in travel retail, the company said.
The group backed its “ambitious” medium-term target for organic revenue growth, pointing to its integrated model and client loyalty.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
