After a second quarter marked by the health and economic crisis, sales in the third quarter (+7% at constant exchange rates and +4% at current exchange rates) are driven by strong activity in the group’s stores (+12% at constant exchange rates), the momentum in Asia and a significant improvement in all other geographical areas.
At the end of September 2020, the Group’s consolidated revenue amounted to €4,288 million, down 14% at current exchange rates and at constant exchange rates.
Axel Dumas, Executive Chairman of Hermès, said: “In 2020, we are seeing the affirmation of major strategic commitments with social and environmental responsibility, the digitalisation of uses and lifestyles, as well as positive market dynamics in Asia. Taking into account these profound and lasting changes allows us today to remain confident despite a still uncertain future. Our good performance enables us to continue to invest and to create jobs. I would like to thank all the teams at Hermès who work daily to keep the house growing.”
Sales by geographical area at the end of September
(at comparable exchange rates, unless otherwise indicated)
At the end of September 2020, sales in the group’s stores were down 11% at constant exchange rates, with a third quarter up 12%. The acceleration of online sales is strengthening, with no rupture in trends, with a sharp increase in traffic and conversion rates.
Wholesale activities are down 35% over nine months, mainly penalised by travel retail.
Asia excluding Japan (+4%) pursued its very favourable dynamic, driven by an excellent third quarter up 29%. It benefitted from the remarkable performance of Mainland China, Korea, Australia and Thailand.
The activity in Hong Kong and Singapore improved.
Online sales are growing strongly and benefit from the new digital platform, deployed this year in Hong Kong, Macao and Korea.
In China, the Dalian store was expanded and renovated in September.
Japan (-11%), after the unfavourable impact of store closings in the spring, saw a strong upturn in the third quarter up by 11%.
It confirmed its momentum thanks to the loyalty of local customers, despite a high comparison basis due to anticipated purchasing expectations linked to the VAT hike last year.
