Spurred by strong demand for luxury accessories, first quarter sales of Birkin bag maker Hermes grew 27 per cent to € 2.8 billion. All divisions of the brand clocked double-digit growth, notes Luca Solca, Analyst, Bernstein. The leather goods and saddlery division reported a 15.8 per cent rise in sales while sales at ready-to-wear and accessories grew by 44 per cent and at Watches division rose by 62 per cent.
Hermes’ sales in China grew till the beginning of March when it had to close a few stores due to the restrictions to curb COVID spread, says Eric du Holgouet, Vice President-Finance. The group continues to support its 60 employees in Russia by paying their salaries and providing training sessions and psychological support.
Last month, Hermes closed three stores in Moscow and deferred plan to open a new one in St Petersburg on hold. It has also halted all exports to the country, including perfumes and beauty products. The brand is stopping sale of products to oligarchs on sanctions lists.
