Hermès International : 3rd quarter 2021 sales
HERMÈS
Quarterly information report as at the end of
September 2021
Continuation of an outstanding growth in
the 3rd quarter
+40% compared to 2019 and +31% compared
to 2020 at constant exchange rates
Paris, 21 October 2021
The Group's consolidated revenue amounted to
€6,602 million at the end of September 2021, up 57% at constant
exchange rates and 54% at current exchange rates compared to the
same period in 2020. This increase is of 35% over two years.
In the third quarter, the Group's consolidated
revenue reached €2,367 million. Sales growth was outstanding at
+31% at constant exchange rates compared to 2020 and reached +40%
over two years. The activity benefited from an upturn in sales in
Europe, an acceleration in America and a sustained dynamic in
Asia.
Axel Dumas, Executive Chairman of Hermès,
said: "The performance of the third quarter reflects an
atypical year, during which we continue our strategic investments
and accelerate job creations. In a world that remains unstable, the
balance between our sixteen métiers and between our locations
around the world, allows us to move forward with optimism and
caution, while continuing to create beautiful, high quality,
sustainable objects."
Sales by geographical area at the end of
September
(at comparable exchange rates, unless otherwise
indicated)
At the end of September 2021, all the
geographical areas confirmed their strong growth, with each one
posting double-digit growth in the third quarter compared to 2019.
Over the first nine months of the year, sales in the Group's stores
increased 60% at constant exchange rates compared to last year, and
43% compared to 2019. The network continued to develop with store
openings and extensions, and online sales increased worldwide.
Wholesale activities remain penalised particularly by travel
retail.
- Asia excluding Japan (+63% and +69% over two years) continued
to see sustained activity, driven by an excellent third quarter
(+29% and +67% over two years). It gained from a remarkable
performance in Greater China and other countries in Asia, despite
new restrictions in Australia, Thailand and Malaysia in the third
quarter. In September, Hermès unveiled a second store in Shenzhen,
our 28th address in mainland China.
- Japan (+35% and +20% over two years) confirmed its solid
growth, thanks to the loyalty of local customers, despite
restrictions due to the health state of emergency.
- America (+85% and +30% over two years) accelerated
significantly at the end of September, driven by an outstanding
performance in the third quarter (+48% and +40% over two years). A
new store opened in Florida's Aventura Mall on October
1st.
- Europe excluding France (+45% and +7% over two years), and
France (+40% and -6% over two years), strongly recovered in the
third quarter, with double-digit growth compared to 2019 (+23% and
+13% respectively). They benefitted from the support of local
customers, growing online sales and the partial return of tourist
traffic. The store in Milan reopened in July after renovation and
extension work, boasting two extra floors. In September, petit h
moved into the rue de Sèvres store in Paris in a location designed
to reflect the dialogue created by the métier between
sustainability, the creation of objects and the reuse of
materials.
Sales by business line at the end of
September
(at comparable exchange rates, unless otherwise
indicated)
At the end of September 2021, all the business
lines posted double-digit growth, both compared to 2019 and 2020,
with an excellent performance over the third quarter and an
outstanding increase in Ready-to-wear and Accessories, Watches and
Other Hermès Business Lines (Jewellery and Homeware).
Sales in the Leather Goods and Saddlery division
(+46% and +27% over two years) benefitted from significant
deliveries over the third quarter and sustained demand. The
maroquinerie de Guyenne (Gironde), the 19th leather goods workshop
of the house, opened in September, reasserting our local presence
in France and the creation of jobs. The increase in production
capacities continues, with the Louviers site (Eure) planned for
2022, the Sormonne site (Ardennes) for 2023 and a new site in Riom
(Puy-de-Dôme) for 2024. In September, faithful to our commitments
to know-how transmission and education, Hermès opened the École
Hermès des savoir-faire (Hermès school of know-how), which is
accredited by the French Education Department and will award a
State-approved diploma in leatherworking expertise.
The Ready-to-wear and Accessories business line
(+71% and +43% over two years) pursued its dynamic growth, thanks
to the success of the ready-to-wear, fashion accessories and
footwear collections. The Women's Spring-Summer 2022 fashion show,
unveiled early October, revealed a solar collection with aerial
silhouettes, after the Men's collection early July, around an
artistic performance filmed in real time.
The Silk and Textiles business line (+63% and
+10% over two years) performed well. A new printing line has been
inaugurated as part of the development of the production site in
Lyon to meet demand.
Perfume and Beauty (+51% and +18% over two
years) benefitted from the successful launches of the H24 Perfume
for Men and Twilly Eau Ginger, from the development of the Beauty
line, with the sustainable, refillable limited edition of Rouge
Hermès Éclat de la nuit. After the launch of Beauty in China in
July, the métier continues its deployment to expand with hand care
products this fall.
The Watches business line (+92% and +77% over
two years) confirmed its excellent performance, reflecting the
technical watch-making expertise and creativity of the collections,
with the success of the men's watch Hermès H08 and other classics
of the house.
The Other Hermès business lines (+77% and +98%
over two years) confirmed their momentum, thanks to Homeware and
Jewellery.
A responsible, sustainable
model
In September, the MSCI ESG rating index
published an "A" rating in its analysis of the house’s resilience
to environmental, social and governance risks.
Hermès was ranked second best Textiles and
Clothing company out of 174 firms in the Sustainalytics ranking,
with "low" exposure to ESG risks.
Lastly, the group has been included in the CAC
40 ESG index, after entering the V.E (Vigeo-Eiris) "Advanced"
category.
These results reflect the sustainable dimension
of Hermès’ craftsmanship model, and our ongoing efforts to improve
our social and environmental performance.
Highlights
At the end of September, currency fluctuations
represented a negative impact on revenue of €139 million.
Over the first nine months, Hermès International
redeemed 142,131 shares for €162 million, excluding transactions
completed within the framework of the liquidity contract.
Outlook
In a context of gradual improvement in the
health situation, the group is continuing its investments and
accelerates job creations. Despite a high comparison base in the
4th Quarter, the group is approaching the end of the year with
confidence.
Our highly integrated craftsmanship model and
balanced distribution network, as well as the creativity of our
collections and our customers' loyalty, give us confidence in the
future.
In the medium-term, despite the economic,
geopolitical and monetary uncertainties around the world, the Group
confirms an ambitious goal for revenue growth at constant exchange
rates.
2021 is marked by the Odyssey, we continue our
journey remaining confident in the future, facing the uncertainties
of the world whilst remaining true to who we are.
Thanks to its unique business model, Hermès is
pursuing its long-term development strategy based on creativity,
maintaining control over know-how and singular communication.
The press release on Revenue at the end of
September 2021 is available on the Group's website:
https://finance.hermes.com.
Upcoming events:
- 18 February 2022: publication of the 2021 annual results
- 14 April 2022: Q1 2022 revenue publication
- 20 April 2022: General meeting of Shareholders 2022
INFORMATION BY GEOGRAPHICAL ZONE
(a)
|
|
As of Sept. 30th |
Evolution /2020 |
Evolution /2019 |
In
millions of Euros |
|
2021 |
2020 |
Published |
At constant exchange rates |
At constant exchange rates |
France |
|
587.3 |
420.0 |
39.8% |
39.8% |
(5.8)% |
Europe
(excl. France) |
|
904.4 |
629.3 |
43.7% |
44.8% |
6.7% |
Total Europe |
|
1,491.7 |
1,049.3 |
42.2% |
42.8% |
1.5% |
Japan |
|
709.9 |
566.5 |
25.3% |
34.6% |
19.9% |
Asia-Pacific (excl. Japan) |
|
3,225.9 |
1,994.6 |
61.7% |
62.7% |
68.6% |
Total Asia |
|
3,935.7 |
2,561.1 |
53.7% |
56.5% |
56.7% |
Americas |
|
1,060.7 |
606.5 |
74.9% |
84.7% |
30.4% |
Other |
|
114.0 |
71.4 |
59.8% |
60.1% |
26.6% |
TOTAL |
|
6,602.1 |
4,288.3 |
54.0% |
57.2% |
35.3% |
|
|
3rd quarter |
Evolution /2020 |
Evolution /2019 |
In
millions of Euros |
|
2021 |
2020 |
Published |
At constant exchange rates |
At constant exchange rates |
France |
|
246.1 |
167.8 |
46.7% |
46.7% |
13.2% |
Europe
(excl. France) |
|
382.5 |
280.4 |
36.4% |
36.4% |
23.1% |
Total Europe |
|
628.6 |
448.1 |
40.3% |
40.3% |
19.0% |
Japan |
|
240.9 |
244.3 |
(1.4)% |
4.0% |
15.5% |
Asia-Pacific (excl. Japan) |
|
1,072.9 |
810.8 |
32.3% |
29.3% |
66.8% |
Total Asia |
|
1,313.8 |
1,055.2 |
24.5% |
23.4% |
53.8% |
Americas |
|
392.9 |
269.8 |
45.6% |
48.4% |
40.3% |
Other |
|
31.7 |
27.2 |
16.5% |
16.7% |
24.3% |
TOTAL |
|
2,367.0 |
1,800.3 |
31.5% |
31.2% |
40.3% |
(a) Sales by destination.
INFORMATION BY SECTOR
|
|
As of Sept. 30th |
Evolution /2020 |
Evolution /2019 |
In
millions of Euros |
|
2021 |
2020 |
Published |
At constant exchange rates |
At constant exchange rates |
Leather Goods and Saddlery (1) |
|
3,076.4 |
2,159.9 |
42.4% |
45.9% |
27.2% |
Ready-to-wear and Accessories (2) |
|
1,634.8 |
974.4 |
67.8% |
71.2% |
43.1% |
Silk
and Textiles |
|
432.8 |
271.0 |
59.7% |
62.7% |
10.1% |
Other
Hermès sectors (3) |
|
735.5 |
424.2 |
73.4% |
76.9% |
98.3% |
Perfume and Beauty |
|
288.1 |
191.2 |
50.7% |
51.3% |
17.8% |
Watches |
|
241.5 |
127.6 |
89.2% |
92.0% |
77.3% |
Other
products (4) |
|
193.0 |
140.0 |
37.9% |
39.5% |
11.0% |
TOTAL |
|
6,602.1 |
4,288.3 |
54.0% |
57.2% |
35.3% |
|
|
3rd quarter |
Evolution /2020 |
Evolution /2019 |
In
millions of Euros |
|
2021 |
2020 |
Published |
At constant exchange rates |
At constant exchange rates |
Leather Goods and Saddlery (1) |
|
1,077.2 |
879.8 |
22.4% |
22.2% |
31.7% |
Ready-to-wear and Accessories (2) |
|
609.7 |
437.4 |
39.4% |
39.4% |
48.8% |
Silk
and Textiles |
|
158.9 |
105.8 |
50.2% |
49.2% |
18.5% |
Other
Hermès sectors (3) |
|
273.2 |
184.9 |
47.8% |
47.5% |
110.0% |
Perfume and Beauty |
|
104.0 |
78.3 |
32.8% |
32.5% |
19.6% |
Watches |
|
82.7 |
53.4 |
54.9% |
53.7% |
73.4% |
Other
products (4) |
|
61.4 |
60.7 |
1.1% |
1.2% |
0.0% |
TOTAL |
|
2,367.0 |
1,800.3 |
31.5% |
31.2% |
40.3% |
(1) The “Leather Goods and Saddlery” business
line includes bags, riding, memory holders and small leather
goods.
(2) The “Ready-to-wear and Accessories” business
line includes Hermès Ready-to-wear for men and women, belts,
costume jewellery, gloves, hats and shoes.
(3) The “Other Hermès business lines” include
Jewellery and Hermès home products (Art of Living and Hermès
Tableware).
(4) The “Other products” include the production
activities carried out on behalf of non-group brands (textile
printing, tanning…), as well as John Lobb, Saint-Louis and
Puiforcat.
REMINDER OF PREVIOUS
PUBLICATIONS
Information by geographical zone
(a)
|
|
First half |
Evolution /2020 |
Evolution /2019 |
In
millions of Euros |
|
2021 |
2020 |
Published |
At constant exchange rates |
At constant exchange rates |
France |
|
341.2 |
252.2 |
35.3% |
35.3% |
(16.0)% |
Europe
(excl. France) |
|
521.9 |
348.9 |
49.6% |
51.8% |
(2.8)% |
Total Europe |
|
863.1 |
601.2 |
43.6% |
44.9% |
(8.4)% |
Japan |
|
469.0 |
322.2 |
45.6% |
58.5% |
22.2% |
Asia-Pacific (excl. Japan) |
|
2,153.0 |
1,183.7 |
81.9% |
86.5% |
69.7% |
Total Asia |
|
2,621.9 |
1,505.9 |
74.1% |
80.5% |
58.5% |
Americas |
|
667.9 |
336.8 |
98.3% |
115.1% |
25.3% |
Other |
|
82.3 |
44.1 |
86.4% |
87.0% |
27.5% |
TOTAL |
|
4,235.1 |
2,488.0 |
70.2% |
76.7% |
32.8% |
(a) Sales by destination.
Information by sector
|
|
First half |
Evolution /2020 |
Evolution /2019 |
In
millions of Euros |
|
2021 |
2020 |
Published |
At constant exchange rates |
At constant exchange rates |
Leather Goods and Saddlery (1) |
|
1,999.3 |
1,280.1 |
56.2% |
62.9% |
24.9% |
Ready-to-wear and Accessories (2) |
|
1,025.1 |
537.0 |
90.9% |
98.0% |
40.1% |
Silk
and Textiles |
|
273.9 |
165.2 |
65.8% |
71.9% |
5.8% |
Other
Hermès sectors (3) |
|
462.3 |
239.2 |
93.2% |
100.4% |
92.1% |
Perfume and Beauty |
|
184.1 |
112.9 |
63.1% |
64.5% |
16.9% |
Watches |
|
158.8 |
74.2 |
113.9% |
120.6% |
79.7% |
Other
products (4) |
|
131.6 |
79.3 |
66.1% |
69.2% |
16.9% |
TOTAL |
|
4,235.1 |
2,488.0 |
70.2% |
76.7% |
32.8% |
(1) The “Leather Goods and Saddlery” business
line includes bags, riding, memory holders and small leather
goods.
(2) The “Ready-to-wear and Accessories” business
line includes Hermès Ready-to-wear for men and women, belts,
costume jewellery, gloves, hats and shoes.
(3) The “Other Hermès business lines” include
Jewellery and Hermès home products (Art of Living and Hermès
Tableware).
(4) The “Other products” include the production
activities carried out on behalf of non-group brands (textile
printing, tanning…), as well as John Lobb, Saint-Louis and
Puiforcat.
REMINDER
FIRST HALF 2021 KEY FIGURES
In millions of euros |
H1 2021 |
FY 2020 |
H1 2020 |
H1 2019 |
|
|
|
|
|
Revenue |
4,235 |
6,389 |
2,488 |
3,284 |
Growth at current exchange rates vs. n-1 |
70.2% |
(7.2)% |
(24.2)% |
15.1% |
Growth at constant exchange rates vs. n-1 (1) |
76.7% |
(6.0)% |
(24.9)% |
12.0% |
|
|
|
|
|
Recurring operating income (2) |
1,722 |
1,981 |
535 |
1,144 |
As a % of revenue |
40.7% |
31.0% |
21.5% |
34.8% |
|
|
|
|
|
Operating income |
1,722 |
2,073 |
535 |
1,144 |
As a % of revenue |
40.7% |
32.4% |
21.5% |
34.8% |
|
|
|
|
|
Net profit – Group share |
1,174 |
1,385 |
335 |
754 |
As a % of revenue |
27.7 % |
21.7% |
13.5% |
23.0% |
|
|
|
|
|
Operating cash flows |
1,487 |
1,993 |
634 |
971 |
|
|
|
|
|
Investments (excluding financial investments) |
214 |
448 |
162 |
170 |
|
|
|
|
|
Adjusted free cash flow (3) |
1,236 |
995 |
27 |
618 |
|
|
|
|
|
Equity – Group share |
8,024 |
7,380 |
6,340 |
5,763 |
|
|
|
|
|
Net cash position (4) |
5,326 |
4,717 |
3,742 |
3,532 |
|
|
|
|
|
Restated net cash position (5) |
5,521 |
4,904 |
3,922 |
3,740 |
|
|
|
|
|
Workforce (number of employees) |
16,966 |
16,600 |
15,698 |
14,751 |
(1) Growth at constant exchange rates is
calculated by applying the average exchange rates of the previous
period to the current period's revenue, for each currency.
(2) Recurring operating income is one of
the main performance indicators monitored by the group's General
Management. It corresponds to the operating income excluding
non-recurring items having a significant impact likely to affect
the understanding of the group's economic performance.
(3) Adjusted free cash flow corresponds to
the sum of operating cash flows and change in working capital
requirement, less operating investments and repayment of lease
liabilities, as per IFRS cash flow statement.
(4) The net
cash position includes cash and cash equivalents on the asset side
of the balance sheet, less bank overdrafts presented within the
short-term borrowings and financial liabilities on the liability
side of the balance sheet. It does not include lease liabilities
recognised in accordance with IFRS 16.
(5) The
restated net cash position corresponds to the net cash position,
plus cash investments that do not meet IFRS criteria for cash
equivalents as a result of their original maturity of more than
three months, minus borrowings and financial liabilities.
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