Many luxury brands are airing concerns about a luxury retail slowdown in Mainland China but French luxury fashion house Hermes may have missed the memo. The high-end label has reported a 17 per cent increase in consolidated revenue for the first quarter of this year, driven by strong demand in China.

The company’s revenue amounted to $4.078 billion (€3.805 billion), up 13 per cent at current exchange rates, with solid activity recorded across all geographical regions.

Axel Dumas, executive chairman of Hermes, credited the growth to clients’ loyalty and the strength of the group’s artisanal model. 

“Hermes pursues its strategy based on exceptional know-how, the finest materials and uncompromising quality,” said Dumas.

In Asia – excluding Japan – sales increased by 14 per cent, with the demand for Hermes products remaining strong within the region. The company’s expansion strategy in China has also proven successful, with the opening of the Wuxi store in the Jiangsu province in January.

Japan recorded exceptional growth, with a 25 per cent increase in sales, accompanied by the inauguration of a new store in Tokyo’s Azabudai Hills district in February.

Meanwhile, sales increased by 12 per cent in the Americas, driven by momentum in the US. 

Europe – excluding France – recorded a 15 per cent increase in sales, while France recorded a 14 per cent increase despite high comparison bases. 

The luxury goods company confirmed that all its métiers achieved good performances. Thanks to sustained demand, the leather goods and saddlery division recorded a 20 per cent increase in sales.

Ready-to-wear and accessories achieved a 16 per cent increase, while the silk and Textiles business recorded an 8 per cent increase in sales.

In January, the French fashion house became a majority shareholder in the retail activities in the UAE alongside its Middle Eastern partner.

The company said the acquisition of a majority stake is not expected to significantly affect this year’s consolidated financial statements.