Hermes, the French luxury goods company, saw sales jump 23% to €3.3bln in the first three months of 2023, driven by growth in Asian and European markets.
Revenue in Asia (excluding Japan) also grew by 23% year-on-year, with the Birkin bag maker claiming strong momentum in China acted as a key component for the growth.
Sales in all of Asia reached over €2bln accounting for just under two-thirds of the group's total sales in the first quarter.
“China is providing a tailwind for Hermes sales with the unwind of Beijing’s strict anti-covid measures releasing a wave of pent-up demand for luxury products,” said Victoria Scholar at Interactive Investor.
She noted that the resumption of international travel for Chinese nationals was also providing a boost to sales elsewhere.
Eric du Halgouet, finance chief at Hermes, revealed that over in the US, store traffic had continued to rise and that in April footfall remained “favourable”.
The Paris-based business posted a 19% increase in sales in the Americas, outperforming rival LVMH, which observed an 8% rise in US revenues.
Louis Vuitton Moet Hennessy (EPA:MC), which is run by the world’s richest man Bernard Arnaut, reported the US had a weaker appetite for fashion, leather goods and jewellery.
Part of Hermes’ growth in the US may have been driven by a 7% price hike to help mitigate the effects of inflation while it remains “vigilant” to the nation's wider economy.
“Hermes is in the rare and fortunate position in which raising its prices can in fact boost the allure and demand for its products, in stark contrast to most goods which suffer less demand as prices rise,” Scholar added.
The group claimed it is moving “into 2023 with confidence” and that it has “an ambitious goal for revenue growth” going forward.
Shares in the company jumped around 1% on Friday, having opened at €1,955.