Hermes 1Q Sales Rose Despite China Lockdowns

   By Joshua Kirby 
 

Hermes International SCA said Thursday that sales across product lines and geographic areas rose in its first quarter, despite headwinds from pandemic-related lockdowns in China.

Total sales came to 2.77 billion euros ($3.02 billion) in the quarter, rising 27% at constant currency from the year-previous period. Analysts had expected the French luxury-goods company to post sales of EUR2.53 billion, according to a poll of analysts' estimates taken from FactSet.

Own-store sales rose 28% in the period, while by business line, ready-to-wear & accessories booked the highest growth at 44%. Leather goods & saddlery, meanwhile rose 16%, helped by production increases and sustained demand, Hermes said.

Sales in Asia excluding Japan rose by 20% in the year despite the impact of lockdowns in China at the end of quarter, which entailed the closure of stores in cities including Shanghai and Shenyang, the company said. Growth was 44% in the Americas and in Europe excluding France.

Looking ahead, Hermes said the impact of the global pandemic on full-year performance was difficult to assess. However, it backed its "ambitious goal" for medium-term revenue growth at constant currency.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

April 14, 2022 02:30 ET (06:30 GMT)

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