Today(October 24), Hermès, a renowned luxury brand, has released its financial report for the third quarter of 2023. The group’s consolidated revenue reached €10.063 billion ($10.72 billion) by the end of September 2023, representing a significant increase of 22% at constant exchange rates and 17% at current exchange rates compared to the same period in 2022.In the third quarter alone, sales continued reached €3.365 billion ($3.56 billion), a 16% increase at constant exchange rates.
At the end of September 2023, all geographical areas posted solid performances, with growth exceeding 20%, despite the high comparison base in Asia during the third quarter of 2022. The group’s stores experienced a 22% increase in activity, benefiting from the strong desirability of their collections and the expansion of their exclusive distribution network. Wholesale activities also saw a significant growth of 23%.
Geographically, Asia, excluding Japan, continued to exhibit strong momentum with a 21% increase in sales. Greater China, Singapore, Thailand, Australia, and Korea were among the regions that achieved robust sales. It is worth noting that the third quarter of 2022 was exceptional due to the lifting of health measures in China. Additionally, Hermès opened a new store in the city of Tianjin, northern China, in July and showcased petit h at the Beijing China World store in September.
While bussiness in Japan soared 25%, The Americans rose 20%, Europe excluding France increased 20% and France rose 22%.
Regarding sales by business line, the Perfume and Beauty sector experienced an 8% increase. This growth was driven by the successful launches of the company’s latest creations and classics. The Twilly d’Hermès line welcomed the Tutti Twilly perfume at the beginning of September, while the Beauty segment was enriched with the Regard Hermès, inspired by the house’s iconic colors, which was launched at the end of September.
Despite the challenging environment, Axel Dumas, Executive Chairman of Hermès, expressed his satisfaction with the solid performance of the results, which reflects the global popularity of its product range and the continued momentum in Asia and the Americas. In response to the uncertain global environment, the company plans to strengthen its investments and teams to support further growth.