Hermes International, the renowned French luxury house, has reported a significant increase in sales for the third quarter. The company achieved strong performance across all its business lines and geographical areas, surpassing its revenue-growth target.
During the July-September period, Hermes recorded sales of €3.365 billion ($3.59 billion), compared to €3.14 billion in the same period last year. This result exceeded analysts’ expectations, who estimated sales to be around €3.31 billion for the quarter.
Hermes experienced double-digit revenue growth at constant exchange rates in all regions. Asia saw a 12% increase, Europe rose by 18%, and the Americas witnessed a substantial surge of 20%.
Despite the overall positive performance, the company faced a challenge due to currency fluctuations. By the end of September, these fluctuations caused a €420 million decrease in revenue.
Confidence in the Future
Despite the current challenges faced by the luxury industry, Hermes remains optimistic. It maintains its medium-term goal for revenue growth at constant exchange rates, and confidently looks forward to the year 2023.
Hermes’s strong sales report follows disappointing third-quarter results from LVMH Moet Hennessy Louis Vuitton. Analysts have raised concerns about a potential slowdown in the luxury industry. Kering, the owner of Gucci, is also set to release a trading update later today.