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The Markets
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The Markets
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The Markets
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Proactive UK has moved.
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Fashion & brands

Hermes first quarter revenue up 27% driven by Europe and Americas

Despite China lockdowns and the war in Ukraine, continued demand was met by an improved inventory situation by the French luxury house

Hermes International reported a 27% rise in first-quarter revenue, driven by strong performances in Europe and North America.

As a result of continued growth in the UK, Germany, Italy and Spain, sales in Europe (excluding France) surged by 44% while the Americas grew by 44%.

Asia sales increased by 20%, with the luxury chain attributing the lower figure to lockdowns and health restrictions in Greater China.

Three of the company's stores in Shanghai are currently closed, though the company opened its first store in the Chinese province of Henan at the end of March in Zhengzhou.

Following the invasion of Ukraine, three stores have closed in Moscow, however, Russian sales are estimated to be less than 1% of group sales.

As part of Hermes' plan to boost production, two new leather goods factories are scheduled to open in France within the next four years.

With the opening of these new workshops, Hermes will now have 24 production sites for its leather goods and saddlery divisions.

The luxury house reported strong growth in the watches business, up 62%, and the ready-to-wear and accessories business, up 44%.

Leather goods and saddlery rose 16%, silk and textiles by 27%.

At constant exchange rates, Hermes generated revenues of €2.76bn in the three months to March.

"The strong growth in sales at the beginning of this year reflects the desirability of our collections and the confidence of our customers in our artisanal and responsible approach," Axel Dumas, executive chairman said.

"Despite a still uncertain context, the group is accelerating its strategic investments, recruitments and training to support the growth of all the metiers of the house."

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