French manufacturer of lifestyle accessories, luxury goods and ready-to-wear products, Hermès has posted 6.2 per cent rise in its consolidated revenue for the first quarter of the ongoing fiscal year 2016 to US $ 1.35 million dollars. The Group’s stores noted sales growth of 8 per cent.
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Country-wise, sales of Hermès’ products in Japan soared by 13 per cent; Asia region (excluding Japan) reported 4 per cent surge. The growth in this area is driven by strong increase in sales in Mainland China. Besides this, sales in the American market increased by 4 per cent and Europe with 9 per cent growth.
The company states that its growth in the reporting quarter was backed by the success of leather goods and saddlery segment, which registered 15.4 per cent rise in business. On the contrary, the ready-to-wear and accessories division was down slightly by 1.9 per cent, due to the economic slowdown in some countries, like France. The silk and textiles business line also witnessed sluggishness with 9.2 per cent decline in sales, driven mainly by slowing sales in Greater China, Europe and America.
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Hermès has also restated that its 2016 sales growth could land well below its medium-term target of 8 per cent (on constant exchange rates), considering the global economic slowdown.
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