French luxury fashion firm Hermès’ revenue rose 23% y-o-y in FY23

France-based luxury fashion brand Hermès reported consolidated revenue of 3,380 million euros in the first quarter (Q1), up 23 percent year-on-year (YoY) at constant exchange rates and 22 percent YoY at current exchange rates in fiscal year 2023 (FY23). The company’s operating income was €4,697 million in FY23, compared to €3,530 million in FY22.

In Q1 FY23, growth was seen across all geographies and business lines, particularly with dynamic sales both in stores and online, Hermes said in a press release.

In the Asia-Pacific region, excluding Japan, sales grew 23 percent year-on-year in the first quarter of FY23, driven by a very good Chinese New Year and strong momentum in Greater China as well as Singapore, Thailand and Australia. Meanwhile, Japan has recorded sustained growth of 26 percent per year based on local customer loyalty.

Hermes first reported consolidated revenue of €3,380 million in FY23, up 23 percent at constant exchange rates, with growth seen across all geographies and business lines. The leather goods and saddlery segment grew 19 percent YoY, while the ready-to-wear and accessories business line saw a 34 percent YoY growth in sales.

Americas grew 19 percent YoY in FY23 Q1, thanks to good momentum in the US. A new store opened in Naples, Florida, marking the fortieth store for Hermès in the United States. Meanwhile, Europe, excluding France, achieved 21 percent growth year-on-year. France saw even stronger growth of 28 percent year-on-year.

In Q1 FY23, the leather goods and saddlery segment, up 19 percent YoY, was driven by sustained demand across regions. Hermès recently opened a new leather goods manufacturing facility in Louviers, with another site set to open in La Sormone in May.

The ready-to-wear and accessories business line saw a 34 per cent growth in sales in the first quarter of FY23, thanks to the success of ready-to-wear, fashion accessories and footwear. The silk and textile business line also recorded sustained growth of 20 per cent, supported by continuous renewal and rich collections, the release added.

“The first quarter of 2023 is consistent with the good results of 2022 and reflects the success of our collections worldwide, driven by the loyalty of our customers. We are proud to strengthen our production capacity and consolidate our industry model. The opening of our 21st leather goods workshop in Louviers in early April A recent example. This 3rd site at the Normandy Pole testifies to our commitment to local anchoring, employment, training and our social and environmental responsibility,” said Axel Dumas, Executive Chairman of Hermès.

Fibre2Fashion News Desk (DP)