Advertise with fastmoving.co.za
 
 

French fashion house Hermes has reported another quarter of brisk sales growth, propelled by red-hot demand in China.
French fashion house Hermes has reported another quarter of brisk sales growth, propelled by red-hot demand in China.

Hermes plans outlets in China as luxury sales soar

INTERNATIONAL NEWS

AFP - Nov 8th 2018, 14:52

French fashion house Hermes has reported another quarter of brisk sales growth, propelled by red-hot demand in China, where the ultra-chic brand expects further growth as it opens stores and rolls out online sales. 

The company said sales in the third quarter climbed 9.4% to €1.46bn, racking up higher sales in all the regions where it operates.

But it was Asia excluding Japan, which has become the group's biggest source of revenue, that set the pace, with sales jumping 11.8% to €519m.

The results reassured investors who had worried that trade tensions between Beijing and Washington could hamper sales of Birkin, Kelly and other hot Hermes handbags to eager Chinese customers.

"We have not seen any change of rhythm in China for now," executive chairman Axel Dumas said. Nonetheless, "we remain vigilant and are not taking anything for granted", he said.

Hermes opened a store in Xi'an in September, after openings in Changsha and Hong Kong in 2018. In October, the Hermes.cn site went online, offering internet sales across China.

The company has not divulged any specific targets for sales growth in 2018. But it said in a statement: "In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates."

At constant rates, overall third-quarter sales rose 9.4%, softening from the 11.6% growth chalked up the previous quarter.

But the storied French leather and fashion house is still enjoying one of its most prosperous eras, with profit margins reaching a record 34.6% in 2017.

It has been bulking up its production capacity, with a new workshop opening in the Franche-Comte region near the French border with Switzerland last April, and two new sites underway near Bordeaux and south of Paris.
Business Live 

Related News

Is #BlackFriday affecting SA’s December retail trade?
19/03/2019 - 09:37
South Africa has seen the Black Friday sales phenomenon grow exponentially in recent years, quickly entrenching itself as a major calendar event on the local retail and shopping scene. The Black Friday sales bonanza, which takes place towards the end of November, is now bigger in SA than ever before. It is a boon for retailers, shopping centres and consumers. However, is Black Friday an emerging threat for the traditional December festive season sales boom?

Shoprite Group helps waiter become an entrepreneur thanks to his unique product offering
18/03/2019 - 15:02
Phenyo Sebaeng (28) had to borrow money from two of his close friends in order to buy a bus ticket from Rustenburg to Cape Town, where he had secured a meeting with a buyer at the Shoprite Group's home office in January 2017.

520+ million Smart Shopper cash-off discounts to be issued for customers
18/03/2019 - 11:49
Pick n Pay’s Smart Shopper will give customers double personalised discounts to help them save even more in the next few weeks.

Three quarters in a row of sales growth for H&M
15/03/2019 - 14:26
Sweden’s H&M, the world’s second-biggest fashion retailer, posted local-currency sales growth for its fiscal first quarter that matched analysts’ forecasts, on Friday, while net sales were slightly higher than expected.

Libstar banks on new food products
14/03/2019 - 10:15
Consumer goods manufacturer and distributor Libstar, whose brands include Lancewood cheese and Denny Mushrooms, says it adjusted to the slowdown in consumer spending by launching hundreds of new food products.