Hermes Reports Strong First Quarter Sales
Gucci may have hit a bump in the road but luxury French leather goods retailer Hermes is still going strong. The company has announced that first-quarter sales accelerated 13.4 percent to 415.1 million euros, or $621.7 million at average exchange rates. The company has seen strong performances in all categories and area. Sales in the Americas are up 23 percent, partially due to the new Wall Street location that opened last June. Sales in Japan are up 4.2 percent. The firm has maintained its guidance of 10 percent organic sales growth for the full year. Hermes plans to open or expand 25 branches this year with their first location opening in New Delhi's Oberoi hotel next week.
The numbers from Hermes echo similar strong numbers from LVMH Moet Hennessy Louis Vuitton, Compagnie Financiere Richemont, Burberry and Swatch which seems to indicate that the upper end of the luxury market is still fairly secure. Hermes has, for the most part, kept their product range small and pricey which seems to be a good strategy in this market where the rich are still spending but the upper middle class are starting to watch their money more carefully.