Asia Sales Surge 21% as China Lifts COVID-19 Restrictions

  • Hermes records a 16% increase in revenues to €3.3bn
  • European sales up by 20.7% to €2.24bn
  • Asian sales (excluding Japan) up 21% to €5.8bn due to China’s COVID-19 restrictions removal
  • Ready-to-Wear and Accessories business line growth of 29%, Watches by 24%, Leather Goods and Saddlery by 19%, Silk and Textiles by 17%, Perfume and Beauty by 8%
  • Other businesses up by 26%
  • Group confirms ambitious revenue growth goal for the medium-term despite global uncertainties

Luxury goods company Hermes has reported a 16% increase in revenues to €3.3bn (£2.87bn) for the three months ending September 30, 2023. European sales reached €2.24bn (£1.95bn), up 20.7% from the same period last year. In Asia, excluding Japan, sales increased by 21% to €5.8bn (£5.05bn) due to China’s removal of COVID-19 restrictions. The Americas saw a 20% increase in sales to €1.7bn (£1.48bn). The Ready-to-Wear and Accessories business line experienced robust growth of 29%, followed by Watches with a 24% revenue increase, Leather Goods and Saddlery up by 19%, Silk and Textiles by 17%, and Perfume and Beauty by 8%. The group remains confident in its growth prospects for the year ahead, citing its integrated artisanal model, balanced distribution network, and loyal client base. Despite economic, geopolitical, and monetary uncertainties worldwide, Hermes affirms its ambitious revenue growth target for the medium term. Axel Dumas, executive chairman of Hermès, states, ‘The solid performance in Q3 reflects the desirability of our collections globally, with sustained momentum in Asia and the Americas. We continue to reinforce investments and teams to support growth.’

Factuality Level: 10
Factuality Justification: The article provides accurate information about Hermes’ financial performance, including specific revenue figures for different regions and product lines, as well as the company’s outlook for future growth. It also includes a quote from the executive chairman of Hermès that supports the reported data.
Noise Level: 2
Noise Justification: The article provides relevant information about Hermes’ financial performance and growth across different regions and product lines, with a statement from the executive chairman. It does not contain any irrelevant or misleading information, and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Hermes’ stock price and luxury goods sector
Financial Rating Justification: The article discusses Hermes’ financial performance, including revenue increases in various regions and product lines, which can impact the company’s stock price and the luxury goods sector as a whole.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

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