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, 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

Liquor and drugs boost Spar's sales
15/11/2018 - 15:07
Ireland was JSE-listed Spar’s best performing region, helping to offset sales and profit declines in Switzerland.

Woolworths to return to profit
15/11/2018 - 14:16
Woolworths will return to profit in the first half of its 2019 financial year following the loss caused by its R7bn impairment of Australian department store chain David Jones in the matching period.

Shoprite & Checkers to give away 150 vehicles in SA’s biggest ‘win a car’ competition
15/11/2018 - 10:53
Shoprite and Checkers are again giving away 150 brand new VW up! cars this festive season. Between Monday 5 November and Monday 24 December 2018, a minimum of three customers will win a car every day in South Africa’s biggest car giveaway.

Superbalist.com launches its Click and Collect service in time for peak season shopping
14/11/2018 - 16:09
Customers use the service by choosing “Collection” when they check out on the Superbalist website or app. They are provided a pin code via email and sms and take that to their chosen Takealot Pickup Point within 7 days of delivery - orders arrive within 2-4 days of purchase.

Retail sales growth half that forecast by economists
14/11/2018 - 14:09
Muted growth in the retail sector may be enough to help steer SA out of a recession.