Hermes International: Release on 1st quarter 2022 sales
HERMÈS
Quarterly information report as at the end of
March 2022
Strong sales momentum across all business
lines
in all geographical areas
(+33% at current exchanges
rates)
Paris, 14 April 2022
The group’s consolidated revenue reached €2,765
million in the first quarter of 2022, up 33% at current exchange
rates and 27% at constant exchange rates. Sales were particularly
dynamic in group stores, especially in America and Europe, driven
by the acceleration in all the business lines and the sustained
growth in Leather Goods.
Axel Dumas, Executive Chairman of Hermès, said:
“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. Despite a
still uncertain context, the group is accelerating its strategic
investments, recruitments and training to support the growth of all
the métiers of the house.”
Sales by geographical area at the end of
March
(at constant exchange rates unless otherwise
indicated)
At the end of March 2022, all the geographical
areas posted strong growth. Sales accelerated in group stores with
a 28% increase compared to 2021. The network continued to develop
with store openings and extensions, and the strengthening of online
sales worldwide.
- Asia excluding Japan (+20%) benefitted at the beginning of the
year from a very good Chinese New Year and from sustained activity,
especially in Thailand, Singapore, and Australia. Since mid-March,
Greater China has been penalised by new health restrictions and
some store closures, particularly in Shanghai and Shenyang. The
stores Pacific Place in Hong Kong and One Central in Macao reopened
in January and February respectively after renovation. A new store
opened in Zhengzhou at the end of March, the first store for Hermès
in the Chinese province of Henan. In March, the HermèsFit event was
held in Bangkok, Thailand, around fashion accessories on the theme
of sport, after New York and Paris.
- Japan (+17%) pursued its sustained increase, which relied onthe
loyalty of local customersand the success of the collections.
- Americas (+44%) recorded a strong acceleration at the end of
March, thanks to a good momentum in the United States. The South
Coast Plaza store reopened on the Californian coast in Costa Mesa
near Los Angeles, after renovation and extension.
- Europe excluding France (+44%) and France (+40%) benefitted
from favourable comparison basis and achieved a sustained growth
particularly in the UK, Germany, Italy and Spain. In France, the
12th Saut Hermès edition was successfully held for the first time
at the Grand Palais Éphémère at the Champ-de-Mars in Paris, while
preserving its authenticity in a sporting and joyful
atmosphere.
Sales by business line at the end of
March
(at constant exchange rates unless otherwise
indicated)
At the end of March 2022, all businesses
confirmed strong momentum and benefitted from the acceleration of
the Ready-to-Wear and Accessories division, Watches and Other
Hermès Business Lines (Jewellery and Homeware).
Growth in Leather Goods and Saddlery (+16%) was
based on the increase in production capacity and sustained demand.
Two new workshops have been announced for 2025 and 2026, in
L’Isle-d’Espagnac (Charente) and Loupes (Gironde), the 23rd and
24th leather goods production sites and will eventually employ 500
craftsmen. They will come in addition to the three sites under
construction in Louviers (Eure) in 2022, La Sormonne (Ardennes) in
2023 and Riom (Puy-de-Dôme) by 2024.
The Ready-to-Wear and Accessories business line
(+44%) confirmed aremarkable growth, driven by the success of the
ready-to-wear, fashion accessories andfootwearcollections. The
women’s fall-winter 2022fashion show held in March at theGarde
républicaine in Paris met with great success, after that of the
men’s collection revealed at the Mobilier nationalin January.
The Silk and Textiles business line (+27%)
performed well, benefitting from an enriched offer by new uses and
new know-how in terms of materials and formats.
Perfume and Beauty (+18%) are driven by the
house's creations and olfactory proposals. The Hermès Beauty line
launched a fourth chapter in March with a new approach to the
complexion Hermès Plein Air.
Watches (+62%) achieved an outstanding
performance, reflecting the technical watch-making expertise and
creativity of the collections. The new Arceau, Le temps voyageur
watch, revealing a unique presentation of different times around
the world, met with great success at the international Watches and
Wonders exhibition in Geneva at the end of March.
Other Hermès business lines (+37%) confirmed
their momentum, thanks to Homeware and Jewellery. The Soleil
d’Hermès tableware collection, with geometric designs of sunshine,
will be presented in June in Milan.
A responsible, sustainable
model
To support the strong growth of their activity,
while passing on their know-how of excellence, all the regional
leather goods centres are gradually opening their École Hermès des
savoir-faire, which issues a diploma in leather working (CAP)
recognised by French National Education authority. After the one of
Fitilieu last autumn, the Ardennes centre opened its École Hermès
des savoir-faire in February.
Hermès is stepping up its investments and
recruitments, thereby strengthening its role as a social actor and
responsible employer.
Other highlights
At the end of March 2022, currency fluctuations
represented a positive impact of €116 million on revenue.
During the first quarter, Hermès International
redeemed 51,890 shares for €61 million, excluding transactions
completed within the framework of the liquidity contract.
Effective 1 March 2022, Sharon MacBeath, Group
Human Resources Director and Agnès de Villers, Chairman and CEO of
Hermès Perfume and Beauty, joined the Executive
Committee.
Outlook
For 2022, the impacts of the health context are
still difficult to assess. Our highly integrated craftsmanship
model and balanced distribution network, as well as the creativity
of our collections and our customers' loyalty allow us to look to
the future with confidence.
In the medium-term, despite the economic,
geopolitical and monetary uncertainties around the world, the group
confirms an ambitious goal for revenue growth at constant exchange
rates.
Thanks to its unique business model, Hermès is
pursuing its long-term development strategy based on creativity,
maintaining control over know-how and singular communication.
The press release on Revenue at the end of March
2022 is available on the Group’s website:
https://finance.hermes.com.
Upcoming
events:
- 20 April 2022: General Meeting of Shareholders
- 29 July 2022: publication of H1 2022 results
- 20 October 2022: Q3 2022 revenue publication
INFORMATION BY GEOGRAPHICAL ZONE
(a)
|
|
1st quarter |
Evolution /2021 |
In
millions of euros |
|
2022 |
2021 |
Published |
At constant exchange rates |
France |
|
214 |
153 |
39.7% |
39.7% |
Europe
(excl. France) |
|
327 |
228 |
43.4% |
43.9% |
Total Europe |
|
541 |
381 |
41.9% |
42.2% |
Japan |
|
277 |
241 |
15.0% |
17.4% |
Asia-Pacific (excl. Japan) |
|
1,447 |
1,130 |
28.0% |
19.8% |
Total Asia |
|
1,724 |
1,371 |
25.7% |
19.3% |
Americas |
|
449 |
291 |
54.3% |
44.2% |
Other |
|
51 |
41 |
25.2% |
24.7% |
TOTAL |
|
2,765 |
2,084 |
32.7% |
27.1% |
(a) Sales by destination.
INFORMATION BY SECTOR
|
|
1st quarter |
Evolution /2021 |
In
millions of euros |
|
2022 |
2021 |
Published |
At constant exchange rates |
Leather Goods and Saddlery (1) |
|
1,197 |
988 |
21.1% |
15.8% |
Ready-to-wear and Accessories (2) |
|
710 |
473 |
50.1% |
44.1% |
Silk
and Textiles |
|
198 |
148 |
33.3% |
27.3% |
Other
Hermès sectors (3) |
|
330 |
228 |
44.4% |
37.4% |
Perfume and Beauty |
|
119 |
99 |
20.0% |
18.4% |
Watches |
|
134 |
78 |
71.5% |
62.0% |
Other
products (4) |
|
77 |
69 |
12.8% |
10.9% |
TOTAL |
|
2,765 |
2,084 |
32.7% |
27.1% |
(1) The “Leather Goods and Saddlery” business
line includes bags, riding, memory holders and small leather
goods.
(2) The “Ready-to-wear and Accessories” business
line includes Hermès Ready-to-wear for men and women, belts,
costume jewellery, gloves, hats and shoes.
(3) The “Other Hermès business lines” include
Jewellery and Homeware (Art of Living and Hermès Tableware).
(4) The “Other products” include the production
activities carried out on behalf of non-group brands (textile
printing, tanning…), as well as John Lobb, Saint-Louis and
Puiforcat.
REMINDER - 2021 KEY FIGURES
In millions of euros |
2021 |
2020 |
2019 |
|
|
|
|
Revenue |
8,982 |
6,389 |
6,883 |
Growth at current exchange rates vs. n-1 |
40.6% |
(7.2)% |
15.4% |
Growth at constant exchange rates vs. n-1 (1) |
41.8% |
(6.0)% |
12.4% |
|
|
|
|
Recurring operating income (2) |
3,530 |
1,981 |
2,339 |
As a % of revenue |
39.3% |
31.0% |
34.0% |
|
|
|
|
Operating income |
3,530 |
2,073 |
2,339 |
As a % of revenue |
39.3% |
32.4% |
34.0% |
|
|
|
|
Net profit – Group share |
2,445 |
1,385 |
1,528 |
As a % of revenue |
27.2 % |
21.7% |
22.2% |
|
|
|
|
Operating cash flows |
3,060 |
1,993 |
2,063 |
|
|
|
|
Investments (excluding financial investments) |
532 |
448 |
478 |
|
|
|
|
Adjusted free cash flow (3) |
2,661 |
995 |
1,406 |
|
|
|
|
Equity – Group share |
9,400 |
7,380 |
6,568 |
|
|
|
|
Net cash position (4) |
6,695 |
4,717 |
4,372 |
|
|
|
|
Restated net cash position (5) |
7,070 |
4,904 |
4,562 |
|
|
|
|
Workforce (number of employees) |
17,595 |
16,600 |
15,417 |
(1) Growth at constant exchange rates is
calculated by applying the average exchange rates of the previous
period to the current period's revenue, for each currency.
(2) Recurring operating income is one of
the main performance indicators monitored by the group's General
Management. It corresponds to the operating income excluding
non-recurring items having a significant impact likely to affect
the understanding of the group's economic performance.
(3) Adjusted free cash flow corresponds to
the sum of operating cash flows and change in working capital
requirement, less operating investments and repayment of lease
liabilities, as per IFRS cash flow statement.
(4) The net
cash position includes cash and cash equivalents on the asset side
of the balance sheet, less bank overdrafts presented within the
short-term borrowings and financial liabilities on the liability
side of the balance sheet. It does not include lease liabilities
recognised in accordance with IFRS 16.
(5) The
restated net cash position corresponds to the net cash position,
plus cash investments that do not meet IFRS criteria for cash
equivalents as a result of their original maturity of more than
three months, minus borrowings and financial liabilities.
The press releases and the presentations of the
results are available on the group's website:
https://finance.hermes.com
The consolidated financial statements are
available at the following address https://finance.hermes.com and
on the AMF website: www.amf-france.org
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