Hermes’ sales in the fourth quarter missed market forecasts, leading to a 7 per cent decline in the brand’s shares as it imposed various caps on production that prevented it from meeting targets. The brand’s sales from leather goods and saddlery division declined 5.4 per cent over the period, as the company faced capacity constraints. However, the volume of leather goods production increased by 7 per cent annually, informs Axel Dumas, Executive Chairman. Compared to 13 per cent in Q3, Hermes’ sales increased only 11 per cent during the fourth quarter to €2.38 billion with US and Chinese shoppers driving growth.

However, Hermes sales grew 42 per cent in 2021from a year earlier and 33 per cent from 2019 levels. The brand’s revenues exceeded their pre-pandemic levels in all regions except France, where business has been dented by the absence of deep-pocketed tourists. The brand does not plan to increase prices to boost results as it is less exposed than rivals to increasing costs of energy and primary materials, adds Dumas.