Data Analysis Of Luxury Goods (Hermes)

November 16th, France, Thursday

Group Herm s (Hermes) announced its third quarter earnings (up to September 30th).

Although growth has slowed down,

and

Demand is stable and sales are better than expected.

According to Reuters, US website WWD and Herm s official website:

According to the constant exchange rate, sales revenue in the third quarter was 1 billion 140 million euros, an increase of 7.9% over the comparable framework (first, second and 8% in the first, second quarter), higher than analysts' previous forecast of 7%.

In the first nine months of this year, sales revenue totaled 3 billion 443 million euros, an increase of 19% over the actual structure, an increase of 9% over the comparable structure and fixed exchange rate.

Among them, the increase in sales revenue, which benefited from exchange rate fluctuations, was 298 million euros.

In the first nine months of this year, Herm e s redeemed 8696 shares at a price of 2 million 900 thousand euros (excluding pactions completed within the framework of the liquidity contract).

Compare with other luxury group data:

LVMH, one of the world's largest luxury goods group, said a month ago that the collapse of the Chinese stock market in the summer hit its sales (especially its flagship brand LouisVuitton), and its third quarter sales grew by 7% year-on-year.

Kering group's third quarter sales increased 12% year-on-year.

Last month, L Oreal, the beauty giant, said that demand for high-end products in Hongkong and airport stores had suffered a severe decline. "Oreal"

Richemont, based on the weak demand for luxury watches in China's Hong Kong and Macao region in January of this month, predicts that the second half of January will continue to be very difficult.

But Burberry, a luxury goods manufacturer in the UK, said yesterday that its same store sales rebounded in the third quarter from the second quarter (the second quarter was affected by the decline in demand in mainland China and Hongkong and 4% in the same store).

By Region (with constant exchange rate):

Japan grew by 16.6% compared to the same period last year; Europe grew by 14.8% compared to the same period last year; the Americas grew by 2% over the same period last year.

The Asia Pacific market (except Japan) increased by 1.5% over the same period last year.

China, Hong Kong and Macau, especially in the face of difficulties, opened the MaisonHerm s s in September 2014.

By category (fixed exchange rate):

Leather goods sales increased by 8.6% over the same period last year.

The group set up new plants in both Is and re and Charente to increase production capacity, and the factories in Franche-Comt were also put into operation.

Garments and accessories grew by 11.9% over the same period last year.

Perfume increased by 10.7% over the same period, driven by Terred 'Herm s and new product sales.

Silk and textiles fell 0.5% last year (reflecting the plight of Greater China).

Watch sales fell 5.2% compared with the same period last year, and the wholesale market in Asia outside Japan was in poor condition.

Although there are uncertainties in the economy, geopolitics and finance all over the world, Herm s still insists on a medium-term target of 8% annual sales growth.

However, under the influence of exchange rate fluctuations, operating profit is expected to be lower than 31.5% in 2014.