Hermes plans outlets in China as luxury sales soar
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
SAFW competitions offers entry into fashion industry
19/07/2019 - 08:41
It opened the door for David Tlale to showcase his designs at New York Fashion Work, Mmuso Maxwell to supply his garments to retail giant Woolworths and Clinton Lotter to take his work to the UK. Now, South African Fashion Week (SAFW) is once again looking to grow the fashion and creative industry by opening it to emerging designers.
US retail sales rise as households spend more
18/07/2019 - 14:16
US retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the hit on the economy from weak business investment.
Strong Asia growth boosts Richemont’s first-quarter sales
18/07/2019 - 13:38
The luxury-goods company reports a 9% year-on-year increase at constant exchange rates.
Refinery celebrates diversity with new fashion campaign
18/07/2019 - 11:39
Local fashion retailer Refinery is set to make waves across the local industry with its new spring campaign which embraces diversity, encouraging others to be unashamedly, authentically themselves.
Amazon offers $10 to Prime Day shoppers for access to their data
18/07/2019 - 09:53
Amazon.com has a promotion for US shoppers on Prime Day, the 48-hour marketing blitz that started recently: earn $10 of credit if you let Amazon track the websites you visit.