Continues today … Hermes-April 14, 2022 08:14

(AOF) – Hermès sales reached € 2.765 billion in the first quarter of 2022, up 33% at current exchange rates and 27% at constant exchange rates. In the Group’s stores, especially in the United States and Europe, activity was particularly dynamic due to the acceleration of all businesses and the “good growth” of leather goods. Leather goods and harness growth (+ 16%) is based on sustained demand and increased capacity.

During 2022, Hermès believes it is still difficult to assess the effects of health conditions. However, the group is confidently facing the future thanks to its highly integrated craftsmanship model, balanced distribution network, collection creativity and customer loyalty.

In the medium term, despite global economic, geopolitical and financial uncertainties, the Group has identified an ambitious goal of profit growth at constant exchange rates.


= / Key point / =

Established in 1837, it is a medium-sized yet world-famous luxury family group with 320 luxury stores worldwide.

-Sales of 6.4 billion euros are divided into 25% including France, 10%, Japan 13% and Asia Pacific excluding Japan 46%.

-The most diverse in the world of luxury goods, from leather goods (50% of sales) to clothing and accessories (22%) such as silk and textiles (7%), perfumes (4%) and watches (4%). One of the brands 3%), tableware …;

-Business model based on vertical integration, “hand power”, maintenance of the know-how of more than 6,000 craftsmen who manufacture 7/10 of the products sold in France, territorial fixation, and sharing with three-thirds. Value created (investment, shareholders, reserves);

-A company where Axel Dumas and Henri-Louis Bauer (representative of Emile Hermès) are dominated by family shareholders (66.6% of capital and 78.2% of voting rights) who are general partners.

-A sound financial structure with € 7.4 billion in shareholders’ equity and € 4.2 billion in cash, combining maintenance of investment and generosity to shareholders.

= / Problem / =

-Growth strategy based on an exclusive distribution network. It is enhanced by regular new store openings and professional quality of employees.

-Innovation strategy

–Petit H, Hermès Horizon,

-Deploying an e-commerce platform available in 29 countries, using digital flagships for omni-channel sales paths, and more.

-Environmental strategy organized around two ambitions:

-By 2020, carbon emissions from our activities have been reduced by 50% compared to 2018 and our three-year commitment has been renewed.


Livelihood carbon fund,

-The ability to resist trends and economic conditions, thanks to its “classical” image and its timeless personality.

-High bargaining power, strong ability to raise prices thanks to very high-end positioning, strategy to secure supply, aggressive policy to buy back concessions, margin support factor.

= / Challenge / =

-50% change in price difference between Europe and other countries.

-Risk of sales decline due to taxation on “rich” in China.

-The impact of investment in digital and store openings in 2020.

-Impact of a pandemic: Sales of 1 increased by 77%


Promoted by Asia and North America during the semester, three times the net profit.

-Medium-term goal of “Ambitious earnings growth at a constant exchange rate”.

-4.55 euro dividend followed by 1


Deposit paid in March 2021.

Two basic trends related to Covid

The health crisis has stepped up digital development in sectors where e-commerce is less important. Its share doubled in two years, reaching 22% in 2021, or € 62 billion. Accessories, sneakers and beauty products are top sellers. According to Bain, digital should become a major luxury sales channel by 2025. Therefore, players like Kering want to increasingly internalize their site management. Another fundamental move related to the health crisis and part of the logic of sustainable development is the second-hand market boom. It has surged 30% since 2019, accounting for 12% of the total market. These changes are being driven by the younger generation, but 25-40 years old should account for 70% of buyers in 2025, compared to 45% in 2019.