Hermès delivers strong revenue and profit growth in 2021
In 2021, consolidated sales of the Hermes Group amounted to 8,982 million euros, an increase of 42 percent at the fixed exchange rate and 41 percent at the current exchange rate compared to 2020. This increase was 33 percent over two years, the company said in the press release. percent at constant exchange rates, in both the first and second half of the year.
The company added that recurring operating profit increased by 78% to 3,530 million euros, or 39.3% of sales. Net profit amounted to 2,445 million euros, an increase of 77 percent compared to 2020.
Axel Dumas, CEO of Hermès, said of the trading performance: “I especially thank the passion and quality of work of our teams, because together we have made 2021 an exceptional year. Abundant creativity, unique knowledge and quality from materials have driven the growth of our sixteen products.”
Hermes report on sales growth in all geographies
The company went on to say that Asia and the Americas recorded the highest growth rates, versus both 2020 and 2019, and that Europe returned to growth versus 2019. Sales in the group’s stores increased 44 percent at constant exchange rates. Compared to 2020, and by 41 percent over two years. Wholesale sales rose 24 percent.
Sales in Asia excluding Japan were up 45 percent and 65 percent over two years, driven by continued performance in Greater China, Australia and Singapore. Shanghai Plaza 66, Suzhou and Ningbo stores reopened after renovation and expansion, after the China World store in Beijing in the spring, and new stores opened in Macau and Shenzhen. In Australia, the Brisbane store has also reopened after the expansion.
In Japan, revenue grew 25 percent and 20 percent in two years. In February, a new store opened on Omotesando Street and the Shinjuku Isetan store in Tokyo was renovated after expansion work in November.
Sales in America are up 57 percent and 24 percent in two years. Two new stores opened in Troy near Detroit in June and in Aventura Mall near Miami in October. Europe excluding France recorded increases of 37 per cent and 10 per cent over two years. Several Hermès stores were renovated and expanded, Zurich in May, Milan in July and Istanbul in October, and the Luxembourg store moved to a new address in November.
France recorded a 35% increase and a 3% decrease in two years. Stores in Lyon and Rue Sevres in Paris reopened in February and March after being renovated and expanded.
Hermes Business Lines Records Revenue Growth
At the end of December 2021, all business lines confirmed their growth, with an increase in ready-to-wear, accessories, watches and other Hermes business lines such as jewelry and homeware.
In the leather goods and saddlery division, turnover increased 29 percent and 23 percent in two years. Capacity expansion continued with the opening of the Louviers site in 2022, the Sormonne site in 2023 and a new site in Riom planned in 2024.
The ready-to-wear and accessories division grew 59% and 44% over two years, while the silk and textile division grew 49% and 15% over two years. Perfume and beauty product sales are up 47 percent and 19 percent over two years, and watch sales are up 73 percent and 77 percent over two years. Other Hermes business lines posted increases of 57 percent and 95 percent over two years.
Hermès said that a dividend proposal of €8 per share will be presented at the general meeting to be held on April 20, 2022. The interim dividend of €2.5, which will be paid on February 23, 2022, will be deducted from the dividend to be approved by the General Assembly.
This article first appeared on FashionUnited.UK, then translated and edited by Ilona Fontaine into Dutch.
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