The value of the day in Paris – Hermès signs a brilliant start to the year – 04/14/2023 at 11:38

(AOF) – Among the strongest increases in the CAC 40, Hermès gained 0.79% to 1,960.80 euros thanks to a solid performance in the first quarter of 2023. The luxury group, which had already benefited yesterday from the brilliant publication of LVMH, has a capitalization of more than 200 billion euros. Between January and March, its sales jumped 23% at constant exchange rates, to 3.38 billion euros. The Bloomberg consensus stood at 16%. Business grew strongly in the group’s stores: +23% at constant exchange rates.

Wholesale sales (+26%) benefited from the rebound in sales to travellers.

The network continued to develop with store openings and extensions and the strengthening of online sales.

At the end of March 2023, the luxury group’s activity in all geographical areas is growing strongly. Asia excluding Japan (+23%), driven by a very good Chinese New Year, continued its strong momentum in Greater China and throughout the region, particularly in Singapore, Thailand and Australia. In January, the store in Nanjing, Jiangsu province in China, reopened its doors at a new address after renovation and expansion.

Europe excluding France (+21%) and France (+28%) achieved very solid growth, particularly in the United Kingdom and Italy, driven by the increase in tourist flows.

“Its strong performance in the Americas region (+19%) in a context of sectoral slowdown, is a reminder of the resilience of its business model in the face of macroeconomic volatility”, underlines UBS, which remains Purchasing. Yesterday, its competitor LVMH had reported a slowdown in demand in this geographical area, one of the only downsides to its publication.

In addition, over the first three months of 2023, all business lines confirmed good momentum and achieved very good performances. The Clothing and Accessories business (+34%) continued its strong momentum, thanks to the success of the ready-to-wear collections, fashion accessories and shoes. This business posted the strongest outperformance: analysts on average expected growth of 22%.

The Silk and Textiles business (+20%) recorded solid growth, supported by constantly renewed creations and by women’s and men’s collections enriched with exceptional materials.

Growth in Leather Goods & Saddlery (+19%) is based on sustained demand in all geographic areas.

In the medium term, despite the economic, geopolitical and monetary uncertainties in the world, Hermès “confirms an ambitious objective of growth in turnover at constant exchange rates”.

Hermès will publish its results for the first half of 2023 on July 28.


Key points

– Luxury family group created in 1837 of medium size but with a worldwide reputation, with 306 exclusive stores and e-commerce platforms in 28 countries;

– Sales of €11.6 billion, split between Asia-Pacific for 58% including Japan for 10%, Europe for 22% including France for 9% and the Americas for 18%;

-One of the most diversified brands in the world of luxury goods, from leather goods (43% of sales), to clothing and accessories (27%), including silk and textiles (7%), perfumes and beauty (4%), watchmaking (4%), tableware…;

– Business model based on vertical integration, the “power of the hand”, the maintenance in France of the know-how of the 5,600 craftsmen in 51 production sites (out of a total of 64) and the sharing with 3 thirds the value created (investments, shareholders, storage);

– Company controlled by family shareholders (66.6% of capital and 78.2% of voting rights) of which Axel Dumas and Henri-Louis Bauer (representative of Emile Hermès) are general partners;

– Financial solidity with €12.5 billion in shareholders’ equity and €9.7 billion in net cash, combining maintenance of operational investments and generosity towards shareholders.


– Long-term strategy based on:

– an artisanal model of excellence, vertical integration and the strength of creation, a multi-local dynamic and resilience via financial autonomy,

– a singular communication,

– an omnichannel approach with a target of €1 billion in revenue;

– Innovation strategy inherent in the creative profession, with Petit H, Hermès Horizon and deployed in the omnichannel;

– Environmental Strategy 2030, validated by the SBTi:

– 50.4% reduction and 100% compensation of carbon emissions from own activities (vs 2018) and 58.1% of supplier emissions,

-3rd commitment in the Livelihoods carbon funds,

– by 2025, stop using single-use plastics,

– quality of raw materials certified by independent third parties (objective 100% for the leather and textile sectors in 2024),

– repairability at the heart of the design;

– Expansion of the offer in jewelry and beauty

– Ability to resist fads and economic contexts thanks to its “classic” image, its timeless character and its strategy of securing supplies;

– Profitability driven by the weakness of the euro against the dollar, production being located in France.

– Profitability driven by the weakness of the euro against the dollar, production being located in France.


– Evolution of price differences – of 50% – between Europe and the rest of the world;

– Welcoming customers to sales price increases in 2023, staggered between 5 and 10% depending on the continent;

– Impact of investments in production capacities -5 new leather goods stores in France and work on the Textile Lyonnais site as well as in the distribution network – omnichannel services and store openings;

– After a 23% increase in activity, the 2022 objective of “an increase in turnover at ambitious constant exchange rates”;

– 2022 dividend of €13, after an installment of €3.5 paid in February.

Learn more about the luxury sector

Market boom for several more years

According to Bain & Company, the global luxury market (fashion, cars, hotels, wines and spirits, cruises, etc.) will have recorded a 21% jump in sales in 2022, to 1,384 billion euros. The luxury personal products segment (jewellery, clothing, watches, leather goods, etc.) should grow by 22% and again grow by 3% to 8% in 2023 despite the expected economic slowdown. Growth should continue in the following years, with an increase that should reach 60% by 2030! According to Bain, Americans’ spending in Europe more than doubled between 2019 and 2022. Much of this development was due to a strong dollar. The Chinese market, on the other hand, is at half mast due to the “zero Covid” policy and strict confinements.

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