Hermès has reported its first-quarter sales demonstrating a promising recovery amidst the COVID-19 pandemic. The luxury designer saw its revenue jump 44 percent year-over-year, reaching $2.5 billion — a 33 percent from pre-pandemic levels in early 2019.
The jump in revenues for Hermès, which typically keeps a very limited stock, comes as consumers are still willing to make monumental purchases even during a crisis due to the value behind the pieces.
Aside from the brand’s most coveted bags, Hermès saw strong growth in other categories such as ready-to-wear, shoes, watches and beauty. Furthermore, sales in homewares and jewelry nearly doubled for the brand.
Demand for Hermès products has been largely driven by the Asian market (excluding Japan), where they increased by 94 percent. In a statement, Hermès called the results “an excellent performance throughout the geographical area, driven by highly dynamic activity in Greater China and sustained activity in Korea, Thailand, Singapore and Australia.”
Looking ahead, the brand says it is difficult to assess sales performance for the coming quarters due to the ongoing economic certainties stemming from the pandemic.
“For 2021, the impacts of the Covid-19 epidemic are currently difficult to assess, as the scale, duration and geographic extent of the crisis evolve every day,” the company said in its Q1 release.
That being said, the brand is working to improve its production capacity, specifically for its Leather Goods and Saddlery division. The company plans to open production sites in Guyenne (Gironde) and Montereau (Seine-et-Marne) this year, the Louviers site (Eure) in 2022, another new site in Ardennes in 2023 and a second production site in Auvergne in 2024.
The news follows Dior and Louis Vuitton, which witnessed a 37 percent increase in sales volume compared to 2019.