News At the end of September, the group’s consolidated revenue totalled 2,897.4 million Euros, a 12% rise at constant exchange rates. After adjusting for the negative impact of currencies, growth is 9%. In the third quarter, growth remained strong (+11% at constant exchange rates), particularly in the group’s stores.
The opening of China’s first Maison Hermès in Shanghai was one of the major events of the quarter. This new three-storey store in a fully renovated historic building is part of the group’s long-term strategy of qualitative development of its distribution network. At the end of September 2014, sales were growing in all regions: Asia (excluding Japan) (+15%) posted a good performance despite recent events in Hong Kong and the slowdown in China’s luxury market, Japan (+13%) was buoyant and confirmed the positive trend observed in the first half-year, America (+14%) maintained its dynamism following a strong third quarter, Europe (+7%) made solid advances in a difficult economic climate.
All divisions show a strong growth, except Watches (-10%) which continue to be penalized by wholesale sales in a market that remains challenging, particularly in Asia (excluding Japan). Growth in Leather Goods and Saddlery (+15%) was supported by the increased production capacities of the two new sites in Isère and Charente. Plans to build two new workshops in Franche-Comté are underway. The dynamism in Ready-to-wear and Accessories sales (+13%) results notably from the success of fashion accessories and the latest ready-to-wear collections. The Silk and Textiles business line (+9%) continues to expand its collections with new formats and exceptional materials. A new online showroom and store for Hermès silk (lamaisondescarres.com) was launched in September. Perfumes (+9%) continue to grow. Other Hermès sectors (+15%) continue to grow.
For the full year, the group is retaining its mid-term objective of revenue growth at constant rates of around 10%. Operating margin could be slightly less than the all-time high achieved in 2013 (32.4%) due to the negative impact of currencies.
November 20, 2014