Hermes

Luxury brand Hermes reported strong sales growth in the first quarter of 2023, with a 23% increase in revenue at constant exchange rates and a 22% increase at current exchange rates. Wholesale activities (+26%) benefitted from the recovery in travel retail, with numbers out of China particularly strong.
Sales however, were dynamic across all geographical areas and business lines.
All geographical areas showed strong growth, with Asia excluding Japan (+23%), Japan (+26%), Americas (+19%), Europe excluding France (+21%), and France (+28%) achieving solid growth.
Leather goods and saddlery (+19%), ready-to-wear and accessories (+34%), silk and textiles (+20%), watches (+25%), and other business lines (+28%) confirmed strong momentum and achieved good performances.
Hermes continued to reinforce its production capacities and artisanal model with the inauguration of new production facilities. It opened its 21st leather goods workshop in Louviers, demonstrating its consistent, but measured, expansion.
While Hemes, the maker of Birkin bags and scarves, is a phenomenal company, we instead own LVMH in the luxury retail space in the Cratos BCI Worldwide Flexible Fund and Richemont in domestic portfolios.
By Lee Kern