French luxury label Hermes has managed to increase its sales in Asia despite the challenges in Hong Kong and the Mainland.
The company says it achieved five per cent sales growth during the first nine months of this year in Asia excluding Japan – where sales rose a whopping 19 per cent.
The Hermes Asia performance was due to the opening of the Maison Hermès in Shanghai in September 2014. Sales in the region improved “in spite of a difficult context in Hong Kong, Macao and to a lesser extent in continental China”.
Globally, the brand posted sales growth of 19 per cent at current exchange rates and nine per cent at constant exchange rates, consolidated revenue reaching €3.443 billion.
The brand’s leather goods and saddlery products grew the most – up 12 per cent – sustained by the increase in production capacities at two new sites in Isere and Charente.
Dynamic sales in ready-to-wear and accessories – up nine per cent – stem mainly from the success of fashion accessories and the latest ready-to-wear collections.
The silk and textiles division grew by three per cent, despite challenges in China, and the perfume division rose six per cent.
Watch sales fell two per cent, largely due to the category’s decline in Asia, excluding Japan.
Gold jewellery sales helped its ‘other’ category to achieve 12 per cent growth.
Hermes says despite the economic, geopolitical and monetary uncertainties around the world, the group is sticking with its medium-term goal for 2015: revenue growth at constant exchange rates of eight per cent.