Despite economic and political uncertainty, Hermès sales continue to rise at an astonishing rate. The French luxury brand’s sales were up a remarkable 23% over the first three months of 2023. Hermès Leather Goods & Saddlery group remains the company’s biggest contributor to growth, representing 42% of its Q1 sales this year. In other words, this money came from bags.
Hermès’ biggest growth happened in its home country. Sales in France were up 28% year over year. Executives attribute this massive increase to an overall increase in tourism compared to 2022. That said, Asia still remains Hermès’ largest market, accounting for 61% of all sales. (Sales in the Americas account for 24% of total revenue.)
“The first quarter of 2023 is aligned with the good results of 2022 and reflects the success met by our collections all over the world, driven by the loyalty of our customers,” Axel Dumas, Executive Chairman of Hermès, explained.
Hermès recently opened its second workshop in Louviers, for the purpose of creating Kelly 25s and an updated version of the Constance Mini. The company plans to open another workshop in Ardennes next month. The hope is that opening two new locations is to help improve supply and production of the brand’s most highly coveted bags.
The strong results come on the heels of the unveiling of the Birkin 20, which was an instant wish list item for Hermès collectors everywhere. So far, only a few have been seen IRL, but they are expected to hit VIP and celebrity clients’ closets before the end of 2024.
It will be interesting to see how much more company sales have gone up by then… Do you think Hermès can keep growing at this rate or is it going to hit a wall?