Hermes smashes analysts’ forecasts thanks to a sharp recovery in Asia and booming online sales
In vogue: The French handbag and silk scarf maker said sales rose 16 per cent between October and December
Hermes smashed analysts’ forecasts thanks to a sharp recovery in Asia and booming online sales.
The French handbag and silk scarf maker said sales rose 16 per cent between October and December, considerably better than its luxury goods rivals.
Customers in China, South Korea and Australia drove the rebound, helping overall sales in Asia jump by 47 per cent.
Hermes also benefited from long waiting lists on ‘iconic’ products such as its Birkin and Constance bags, which sell for more than £8,000.
The strong finish to the year meant that the pandemic only inflicted a 6 per cent drop in sales in 2020 to £5.5billion, the best performance so far in the luxury goods sector.
Shares in the group, which have surged 41 per cent in the past year, rose by more than 3 per cent yesterday in Paris.
Luca Solca, luxury goods analyst at broker-dealer Bernstein, said: ‘The bigger difference with weaker peers is not only better performance in Europe, but also a significantly stronger rebound in Asia.’