In the first quarter 2019, the Group’s consolidated revenue amounted to €1,610 million, up +16% at current exchange rates and +12% at constant exchange rates, thanks to dynamic sales growth in Group stores (+13% at constant exchange rates).
Over the first quarter 2019, all geographical areas recorded sustained growth. Asia excluding Japan (+17%) achieved an outstanding performance, with extremely good sales growth driven by mainland China and double-digit growth in all other countries of the area. The Group benefited from the success of the store extensions completed in 2018, in particular on the Shanghai IFC and Singapore Marina Bay Sands. A new store opened in Phuket Floresta, Thailand, in March. Hermès is continuing the roll-out of the new digital platform in Asia, launched in China last October.
Japan (+10%) posted remarkable growth, despite a high comparison basis. America (+10%) pursued its development with the opening of the 35th Hermès store in Orlando in March and the inauguration of a new store in New York’s Meatpacking district early April. Finally, the Group announced the future location of the new Maison Hermès at 706 Madison Avenue in New York.
Europe excluding France (+9.5%) achieved a sound performance, driven particularly by the United Kingdom. France (+1%), while negatively impacted by events which continued at the start of the year, successfully hosted the 10th Saut Hermès event at the Grand Palais.
All business lines recorded growth with a remarkable performance of the Ready-to-Wear and Accessories division:
The growth of the Leather Goods and Saddlery business line (+12.5%), driven by sustained deliveries at the start of the year and benefitting from a favourable comparison basis, was particularly strong in the first quarter 2019.
The Ready-to-Wear and Accessories division (+13%) confirmed its dynamic activity, driven by the success of the ready-to-wear collections, as well as fashion accessories, particularly shoes.
The Silk and Textiles business line recorded an increase (+2.5%) with collections that combine diversity of materials with creative design.
Perfumes (+3%) posted an increase, driven by the success of Terre d’Hermès, despite a high comparison basis at the beginning of last year following the new fragrance launches, Twilly d’Hermès, and Eau de Citron noir.
The Watches business line (+22%) recorded a strong performance, reflecting the creativity of the collections and driven by the launch of the new women’s watch Galop d’Hermès. The Arceau L’heure de la lune watch was very well received at the Salon International de la Haute Horlogerie (SIHH) in Geneva last January.
Other Hermès business lines (+18%) recorded strong development over the quarter, both in Jewellery and in Hermès home products.
In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the Group confirms an ambitious goal for revenue growth at constant exchange rates.