Hermès sales 2009Monday, 15 February 2010
The Christmas holidays drove up sales in the Group’s stores up by 18 per cent in the fourth quarter and by 11 per cent on a consolidated basis. Sales for the Hermes' own stores advanced by 17 per cent at current exchange rates and by 12 per cent at constant exchange rates. Hermès expanded its distribution network, with the addition of fourteen new branches and the renovation or expansion of nine other locations. Wholesale revenues dropped by 17 per cent at comparable exchange rates over the year as distributors drew down their inventories.
Per sector, sales growth was driven by Leather Goods & Saddlery (up 16 per cent), under the impetus of leather bags, and by Silks & Textiles (up 6 per cent), owing to a stream of new silk creations for women and men. Ready to Wear & Fashion Accessories (up 3 per cent) benefited primarily from solid demand in fashion accessories, while sales of Perfumes, which were adversely affected by distributor inventory drawdown over the first nine months, fell by 7 per cent.
Despite an improvement over the last two quarters, sales for the other sectors were down, primarily in Watches and Tableware, where the bulk of sales are generated through non-Group distribution channels. Hermès will continue to follow its long-term strategy and is looking to invest in expanding its distribution network. It plans to open twelve branches, including a new store on rue de Sèvres in Paris and a second branch on Madison Avenue in New York.
Image: Hermès Paris Store