Hermes International : Release on 1st quarter 2021 sales
HERMÈS
Quarterly information report as at the end of
March 2021
Robust sales growth in the first
quarter:
+44% vs 2020 and +33% vs 2019 at constant
exchange rates
Paris, 22 April 2021
In the first quarter of 2021, the group's
consolidated revenue amounted to €2,084 million (+44% at constant
exchange rates and +38% at current exchange rates), thanks to an
outstanding performance in Asia and Japan, the upturn in America
and a good resistance in Europe. The organic revenue growth was
+33% compared to the first quarter of 2019.
Axel Dumas, Executive Chairman of Hermès,
said:"I would like to thank our employees who, for a year now, have
been showing great courage and unfailing commitment. In a still
unstable context, our strong sales growth confirms the robustness
of our sustainable artisanal model and the desirability of our
collections to our customers all over the world.”
Sales by geographical area at the end of
March
(at constant exchange rates unless otherwise
indicated)
The first quarter of 2021 confirmed the
acceleration in sales in the group’s stores, with a strong growth
of +51% compared to 2020, and of +41% compared to the first quarter
of 2019. The network continued to develop with the openings and
extensions of stores, and thanks to growing online sales worldwide.
Wholesale activities (-2%) remain penalised particularly by travel
retail.
- Asia excluding Japan (+94%) achieved an excellent performance
throughout the geographical area, driven by highly dynamic activity
in Greater China and sustained activity in Korea, Thailand,
Singapore and Australia. The event around the men’s universe,
organised in Shanghai late March, revealed to our clients the
backstage of the 2021 Spring/Summer collection.
- Japan (+20%) confirmed again a sound growth notably due to the
loyalty of local customers despite the sanitary state-of-emergency
measures. A new store was successfully opened in Tokyo in February
on Omotesando Avenue, a new neighbourhood for the house.
- America (+23%) returned to growth which started at the end of
2020 and completed a good first quarter despite local
constraints.
- Europe excluding France (-1%) and France (-9%) are still
penalised by new restrictions during the first quarter and by store
closures in several countries, especially in the United Kingdom,
Germany and Switzerland. The drop in tourist traffic was partly
offset by the loyalty of local customers and strong growth in
online sales. The Lyon store reopened in February after renovation,
followed early March by the store on rue de Sèvres in an unsual
space, the former swimming pool of the Lutetia hotel in Paris.
Sales by business line at the end of
March
(at constant exchange rates unless otherwise
indicated)
At the end of March 2021, all the business lines
returned to growth, with a remarkable increase intheReady-to-Wear
and Accessories division, Watches and Other Hermès Business
Lines.
In the Leather Goods and Saddlery division
(+34%), sales accelerated in the first quarter, driven by the
strong deliveries made at year end. The Victoria bag, combining
leather and canvas with an innovative material, Sylvania, made out
of Fine Mycelium, completed the collections. The increase in
production capacities continues, with the opening of the sites in
Guyenne (Gironde) and Montereau (Seine-et-Marne) this year, the
Louviers site (Eure) scheduled for 2022, the new site in Ardennes
for 2023 and the second production site in Auvergne for 2024.
Hermès continues to strengthen its local presence in France and job
creation.
The Ready-to-Wear and Accessories division
(+51%) pursued its strong dynamic, thanks to the success of the
ready-to-wear and fashion accessories collections. Thewomen’s
Autumn-Winter 2021 fashion show was staged in digital format in
three acts from New York, Paris and Shanghai in Marchand The
fashion show was met with great appreciation from the public, as
well as the men’s collection unveiled in January.
The Silk and Textiles business line (+34%)
progressed well, thanks to the diversity of creations, materials
and formats that have met with great success with our customers,
particularly in Asia.
Perfumes and Beauty (+21%) posted growth and
benefited from the launch in February of the new men’s perfume H24.
The lipstick range continued to develop, with the Spring-Summer
2021 limited edition.
Watches (+96%) performed exceedingly well in the
first quarter, reflecting the house’s technical watch-making
expertise and creativity of the collections. The new men's watch
H08, with a sporty design and geometrical lines, was presented at
the Watches and Wonders international fair in Geneva in April.
The Other Hermès business lines (+93%) confirmed
their momentum, thanks to Homeware and Jewellery. The new high
jewellery collection Lignes sensibles was unveiled at the Faubourg
Saint Honoré store at the beginning of the year.
Other
highlights
At the end of March 2021, currency fluctuations
represented a negative impact on revenue of €79 million.
Outlook
For 2021, the impacts of the Covid-19 epidemic
are currently difficult to assess, as the scale, duration and
geographic extent of the crisis evolve every day. Our highly
integrated craftsmanship model and balanced distribution network,
as well as the creativity of our collections and our customers’
loyalty, give us confidence in the future. The Group remains highly
engaged and active, by gradually adapting measures to those taken
by health and public authorities.
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.
The odysseyis be the theme in 2021 as Hermès
continues its journey with confidence, braving the uncertainties of
the world, ever true to its identity.
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
2021 is available on the Group's website:
https://finance.hermes.com.
Upcoming events:
- 4 May 2021: General Meeting of Shareholders
- 30 July 2021: H1 2021 results publication
- 21 October 2021: Q3 2021 revenue publication
REVENUE BY GEOGRAPHICAL AREA
(a)
|
|
1st quarter |
Evolutions /2020 |
Evolutions /2019 |
In
millions of euros |
|
2021 |
2020 |
Published |
At constant exchange rates |
At constant exchange rates |
France |
|
153.1 |
168.9 |
(9.3)% |
(9.3)% |
(17.2)% |
Europe
(excl. France) |
|
227.9 |
234.7 |
(2.9)% |
(0.8)% |
(11.6)% |
Total Europe |
|
381.0 |
403.5 |
(5.6)% |
(4.4)% |
(13.9)% |
Japan |
|
241.1 |
213.6 |
12.9% |
20.0% |
20.6% |
Asia-Pacific (excl. Japan) |
|
1,130.1 |
600.9 |
88.1% |
93.6% |
76.4% |
Total Asia |
|
1,371.3 |
814.5 |
68.4% |
74.3% |
63.2% |
Americas |
|
290.9 |
258.5 |
12.6% |
22.6% |
14.7% |
Other |
|
40.6 |
29.0 |
39.7% |
40.1% |
20.9% |
TOTAL |
|
2,083.7 |
1,505.5 |
38.4% |
43.7% |
32.8% |
(a) Sales by destination.
Informations par métier
|
|
1st quarter |
Evolutions /2020 |
Evolutions /2019 |
In
millions of euros |
|
2021 |
2020 |
Published |
At constant exchange rates |
At constant exchange rates |
Leather Goods and Saddlery 1 |
|
987.9 |
771.1 |
28.1% |
33.6% |
25.7% |
Ready-to-Wear and Accessories 2 |
|
473.4 |
325.8 |
45.3% |
50.9% |
35.1% |
Silk
and Textiles |
|
148.4 |
115.0 |
29.0% |
33.9% |
8.5% |
Other
Hermès sectors 3 |
|
228.3 |
122.9 |
85.8% |
92.8% |
100.6% |
Perfumes and Beauty |
|
98.9 |
82.1 |
20.5% |
21.4% |
17.5% |
Watches |
|
78.1 |
41.0 |
90.3% |
96.5% |
83.8% |
Other
products 4 |
|
68.7 |
47.7 |
44.0% |
46.4% |
23.3% |
TOTAL |
|
2,083.7 |
1,505.5 |
38.4% |
43.7% |
32.8% |
1 The “Leather Goods and Saddlery” business line
includes bags, riding, diaries 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 Hermès home products (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 the John Lobb, Saint-Louis and
Puiforcat.
REMINDER –
KEY FIGURES
In millions of euros |
2020 |
2019 |
|
|
|
Revenue |
6,389 |
6,883 |
Growth at current exchange rates vs. n-1 |
-7.2 % |
15.4 % |
Growth at constant exchange rates vs. n-1 (1) |
-6.0 % |
12.4 % |
|
|
|
Recurring operating income (2) |
1,981 |
2,339 |
As a % of revenue |
31.0 % |
34.0 % |
|
|
|
Operating income |
2,073 |
2,339 |
As a % of revenue |
32.4 % |
34.0 % |
|
|
|
Net profit – Group share |
1,385 |
1,528 |
As a % of revenue |
21.7 % |
22.2 % |
|
|
|
Operating cash flows |
1,993 |
2,063 |
|
|
|
Investments (excluding financial investments) |
448 |
478 |
|
|
|
Adjusted free cash flow (3) |
995 |
1,406 |
|
|
|
Equity – Group share |
7,380 |
6,568 |
|
|
|
Net cash position (4) |
4,717 |
4,372 |
|
|
|
Restated net cash position (5) |
4,904 |
4,562 |
|
|
|
Workforce (number of employees) |
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 release and the presentation of the
2020 results are available on the group's website:
https://finance.hermes.com
The complete consolidated financial statements
are available at https://finance.hermes.com and on the AMF website:
www.amf-france.org.
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