PARIS, FRANCE – French luxury good group Hermes reported Friday a surge in first-quarter sales that beat expectations, buoyed by the return of Chinese shoppers after the country ended its Covid restrictions.
The handbag maker group said revenues soared 22 percent to US$3.7 billion (3.4 billion euros) in the period from January to March following a record in 2022.
“The first quarter of 2023 is a continuation of the good results of 2022,” Hermes chief executive Axel Dumas said in a statement.
The sales were well above the consensus figures.
The performance was driven by strong sales, especially in Asia – with the exception of Japan – thanks to a “very good Chinese New Year,” the group said.
“Throughout Greater China we have strong growth rates and very vigorous traffic,” Chief Financial Officer Eric du Halgouet said during a conference call, pointing to a “very good performance” in Hong Kong and Macau.
China, the world’s second biggest economy and a major market for the luxury sector, ended nearly three years of Covid restrictions in December.
Hermes rival LVMH also reported an “excellent” first quarter on Thursday following China’s reopening, with sales jumping 17 percent to US$23 billion (21 billion euros).
Hermes said it expected to reach an ambitious sales growth target “despite economic, geopolitical and monetary uncertainties around the world”.