Hermés Beats Estimates Despite Loss Of Sales In China And Russia

Hermés Beats Estimates Despite Loss Of Sales In China And Russia

Hermés Beats Estimates Despite Loss Of Sales In China And Russia
Hermés Beats Estimates Despite Loss Of Sales In China And Russia
Retail Bum

Retail Bum

Retail Bum

Retail Bum

Share
French luxury company, Hermés, beat market estimates in the first quarter as it benefitted from strong demand for its products in the U.S. and European markets despite the ongoing war in Ukraine and stringent COVID lockdowns in China.

The company saw strong sales in China until the beginning of March. However, as strict restrictions were placed in Shanghai to curb the spread of COVID-19, the company was forced to shutter store locations, Executive Vice President for Finance Eric du Halgouet said.

“We are confident and hope that these stores in Shanghai will reopen quickly – in any case the fundamentals are excellent in China,” he added.

The company’s revenues increased by 27% to $3.06 billion in the three months leading up to March, which was much higher than the 15% growth estimates. It saw double-digit growth in its leather division, which manufactures Birkin and Kelly bags and saddlery products, with sales increasing by 15.8%. Meanwhile, the apparel and accessories division saw sales increase by 44%, while watch sales rose by 62%.

Hermés benefitted from increasing its production capacity for leather and other goods, including silk and porcelain, in January — a factor that helped the company rebound from its rare underperformance last year.

Following the earnings results, the company’s shares went up by 4.5% as of 0900 GMT.

MUST READS
Ryan Cohen Acquires Stake in Nordstrom

Ryan Cohen Acquires Stake in Nordstrom

Activist investor Ryan Cohen has asked Nordstrom to make changes to its board after acquiring a sizable stake in the company. Cohen, who is now one of the top-five non-family shareholders in Nordstrom, wants a targeted board refresh that can support cost-cutting efforts in light

Estée Lauder Expects Smaller Decline in Sales

Estée Lauder Expects Smaller Decline in Sales

Estée Lauder is expecting a smaller decline in annual sales than anticipated, thanks to resilient demand for its skincare and fragrance products. In the U.S., the company is benefitting from continued demand from wealthier consumers who are indulging in smaller purchases, such as fragrances and

Peloton Reports Best Quarterly Performance in a Year

Peloton Reports Best Quarterly Performance in a Year

Peloton narrowed its year-over-year net loss for a third quarter in a row, with subscription revenue outpacing sales of its hardware products once again. The company reported a net loss of $335.4 million, down from $439.4 million a year before, marking its narrowest loss since

No more posts to show, explore other topics: