New stores and tourism drive Hermes’ annual sales up 23%

NEWSLETTERS FROM DOW JONES

Increased tourism and new stores contributed to Hermes International SCA’s sales momentum in the first half of the year.

As a constant currency figure, Birkin Handbags‘ first quarter sales grew 23% from EUR2.77 billion last year to 3.38 billion euros. In 2022, growth was the same as in 2021.

According to a FactSet poll of analysts, sales are expected to reach EUR3.17 billion in the quarter.

In Asia, Hermes reported continued momentum despite China’s now-ending pandemic restrictions. In addition, the first Nanjing store was opened after the Lunar New Year. The group’s 40th store in Naples, Florida, boosted sales in the U.S. as well.

The company said that tourism flows in Europe, particularly France, Italy and the U.K., boosted sales.

A recovery in travel retail helped boost wholesale revenue by 26%.

Based on its integrated model and long-term client loyalty, the group backs its “ambitious” organic revenue growth target.

For more information, contact Joshua Kirby at joshua.kirby@wsj.com or @joshualeokirby on Twitter