×
33 689
Fashion Jobs
PVH
sr Manager of Strategic Sourcing Strategy & Planning
Permanent · New York
PVH
Director of Digital Analytics
Permanent · Bridgewater Township
PVH
Senior Manager Strategy- Pvh Corp
Permanent · New York
TJX CORPORATE
sr. Security Analyst - Cyber Defense
Permanent · Marlborough
MACY'S
Macy’s Asset Protection / Loss Prevention Security Guard
Permanent · Woodbridge Township
TIFFANY & CO
Business Analyst
Permanent · Parsippany-Troy Hills
L'OREAL GROUP
Manager - Human Resources
Permanent · Somerset
L'OREAL GROUP
Manager - Human Resources
Permanent · Florence
L'OREAL GROUP
Director E-Commerce Fulfillment
Permanent · Clark
L'OREAL GROUP
Director - Finance, Retail Operations
Permanent · St. Petersburg
LULULEMON
Store Business Lead i One Paseo
Permanent · San Diego
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · Newington
NORDSTROM INC
Security Ambassador 1
Permanent · Paramus
NORDSTROM INC
Loss Prevention Security Ambassador Fashion Show Mall
Permanent · Las Vegas
NORDSTROM INC
Loss Prevention Agent Perimeter Expo Rack
Permanent · Atlanta
NORDSTROM INC
Loss Prevention Security Ambassador Oakway Center Rack
Permanent · Eugene
NORDSTROM INC
Loss Prevention Security Ambassador Midwest Rack Headquarters
Permanent · Chicago
NORDSTROM INC
Loss Prevention Agent Downtown Seattle Rack
Permanent · Seattle
NORDSTROM
Loss Prevention Security Ambassador 1 Nordstrom San Francisco Centre
Permanent · San Francisco
ROSS STORES
Store Protection Specialist
Permanent · Fort Worth
ROSS STORES
Store Protection Specialist
Permanent · Tuscaloosa
ROSS STORES
Store Protection Specialist
Permanent · Arnold
By
Reuters API
Published
Oct 22, 2020
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Hermès echoes luxury sales rebound amid online surge

By
Reuters API
Published
Oct 22, 2020

Hermès' comparable sales picked up in the third quarter, rising 7%, and the Birkin bag maker said this positive momentum had extended into October after a strong rebound in Asia and surging online revenues.


Hermes - Spring-Summer2021 - Womenswear - Paris - © PixelFormula



Luxury goods makers were hit hard by store closures during lockdowns to combat the coronavirus pandemic and sales for the industry as a whole are expected to fall by up to 35% this year - an unprecedented plunge after a decade of stellar growth.

But a gradual re-opening, even as governments bring in fresh measures to fight rising COVID-19 infections, has helped sales to recover. High-end labels, which used to be more reticent to sell their products online, have also seen web revenues surge.

Hermès - known for its $12,000-plus handbags like the Birkin, which often generates waiting lists - already sells a selection of leather goods online but said it would make a larger push.

“We are going to gradually increase our offer of products online, except for the very iconic products such as Birkin,” finance chief Eric du Halgoüet told reporters.

He said the online channel had now become the group’s “biggest store”, with revenues exceeding those of any of its flagship shops. Sales online grew by nearly 100% in all regions in the first nine months of the year.

Hermès shares have risen 20% since the start of the year despite the health crisis as the brand is traditionally seen as being more resilient in a downturn than rivals.

The shares were down 0.6% in early trade on Thursday, with the French blue-chip index dropping 1.3%

Hermes’ comparable sales, which strip out the impact of foreign exchange rates and acquisitions, came in at 1.8 billion euros ($2.13 billion) in the three months to end-September - making it the first luxury brand to post rising overall revenues in the third quarter.

Sales of leather goods grew 8% in the period while fashion sales were also up, echoing buoyant trends at Louis Vuitton owner LVMH.

“Global luxury goods demand has materially revived over the summer, never mind the fact that intercontinental travel is still virtually nonexistent. Best-in-class companies are already producing year-on-year growth in 3Q20, much ahead of start of Covid-19 industry estimates,” said Luca Solca of Bernstein.

Third-quarter growth was strong in Asia, where lockdown restrictions were eased first, with sales up 25%, while revenues fell by 15% in Europe -- including a 23% drop in France -- and by 5% in the Americas.

Revenue from Hermès silk scarves were down 20.5% in the period. The group said that was due to an unfavourable comparison to a year ago and lower travel retail activity.

Du Halgoüet said the positive sales trend of the third quarter had continued into October and the group had not yet seen an impact from new restrictions imposed by European governments as contagion numbers rise again sharply.

But Hermès struck a cautious note for the full-year outlook, saying the impact of the Covid-19 epidemic remains “difficult to assess, as the scale, duration and geographic extent of the crisis evolve every day.”
 

© Thomson Reuters 2020 All rights reserved.