The turnover of the Hermes group in the first half of 2022 amounts to 5,475 ME, up 29% at current sales prices and 23% at constant sales prices compared to the same period in 2021 . of sales) and the group reached a profit of 1,641 ME (30% of sales).
Both sales reached 2,710 ME and increased by + 26% in current sales prices and + 20% in regular sales prices, with strong strength in all businesses.
Axel Dumas, CEO of Hermès, said: “The good timing of the results of the first half reflects the growth of our 16 businesses and the strong demand of our products, designed by producers in a sustainable way, without compromising on quality. An unstable environment, we move forward with confidence, loyal to our responsible business principles and loyal to our employees and with colleagues.”
Work at the end of June by region
(data at equivalent exchange rates, unless otherwise stated)
In the first half of 2022, all regions posted solid performance, with Asia holding up well despite the health situation in China. Sales in group stores (+23%) came from strengthening the independent omnichannel network and online sales. The growth in wholesale sales (+25%) was the result of a recovery in sales to travelers.
Asia outside of Japan (+15%) was led by strong activity across the region, as well as continued activity in Singapore, Australia and Korea. Greater China rebounded strongly in June, after being hit by health restrictions and store closures, particularly in Shanghai and Beijing in April and May. After the re-opening of the renovated stores at Pacific Place in Hong Kong and One Central in Macao at the beginning of the year, a new store in Zhengzhou was successfully launched at the end of March , in Henan province in China.
Japan (+20%) showed a remarkable performance, based on the loyalty of local consumers. In June, the first edition of the exhibition La Fabrique de la Légère, presenting the theme of the year, was held in Tokyo.
America (+34%) continued its best period at the end of June. In the United States, a new store opened in Austin in April, the third store in Texas. Hermès presented the Making exhibition, around the house’s work, in Detroit in June.
Europe outside France (+34%) and France (+41%) continued their steady growth, thanks to the stability of local consumers and the return of travel flows, especially in France, United Kingdom and Italy.
Done at the end of June by the company
(data at equivalent exchange rates, unless otherwise stated)
At the end of June 2022, all businesses have confirmed their strong momentum, with significant growth in Silk, clothing and accessories, watches and other Hermès businesses (jewellery and Home products), thus showing the great beauty of the Hermes house.
The growth of leather goods and saddles (+12%) is due to the constant demand and increased production capacity, according to its annual target. The RMS (Rolling Mobility Suitcase), the result of special knowledge and many innovations, has received a great reception. Five new leather properties will be rolled out over the next five years, including the Louviers (Eure) and La Sormonne (Ardennes) sites in 2023, and Riom (Puy-de-Dôme) in 2024. The L ‘Isle-d’Espagnac (Charente) and Loupes (Gironde) have been announced for 2025 and 2026. Therefore Hermès continues to strengthen its regional roots in France and develop the production.
The Clothing and Accessories sector (+36%) continued its good season, driven by the success of ready-to-wear collections, fashion accessories and shoes. The fall-winter 2022 women’s show, presented in March at the Republican Guard in Paris, received a great reception, as did the spring-summer 2023 men’s collection that opened at the Manufacture des Gobelins in June . New accessories such as the micro Rivale bracelet, the Olympe mono-earring or the Enid shoes, have met with great success, with the icons of the house, namely the bracelets Hapi and clic H and the Kelly belt.
The Silk and Textiles business has progressed well (+29%), with collections that combine different materials, styles and new uses, supported by the development of manufacturing capabilities at the Lyon site of Pierre-Bénite.
Perfume and Beauty (+23%) benefited from the success of the opening of the new chapter of Beauty Hermès Plein Air, dedicated to skin, and lip oils, Hermèsistibles. The Perfume has been enhanced with Terre d’Hermès Eau Givrée, an instrument that combines freshness and power, and the colognes group welcomes a fresh and airy element, Eau de Basilic Pourpre, in June.
Watchmaking (+55%) has achieved an excellent performance in the development of pieces with a distinctive look such as the Arceau Le temps voyageur watch, and the success of its main principles such as models Hour H and Cape Cod.
Other businesses Hermès (+ 33%) continued their strong performance, thanks to the Home universe and Jewellery. The world of the House was presented in June at Milan Design Week, with new fashion accessories and the new Soleil d’Hermès table service. Shown at the Faubourg Saint-Honoré store is the seven-high collection called Les jeux de l’ombre, which is about new styles and information.
Current operating income increased by +34% to 2,304 ME, compared to 1,722 ME in the first half of 2021. Thanks to the leverage effect created by the strong growth of sales and with exceptional collection costs, the current income can be very high. historical level at 42% compared to 41% at the end of June 2021.
1,641 ME (30% of sales) compared to 1,174 ME in the first half of 2021, an increase of +40%.
190 ME and adjusted free cash flow up to 1,421 ME.
After paying the ordinary dividend (837 ME) and taking into account the repurchases (115 ME for 103,368 shares without the limited agreement), the net income increased increased by 615 ME to 7,685 ME, against 7,070 ME on 31 December 2021.
A role model of integrity and responsibility
The Hermès company continued its recruitment and increased its workforce by more than 800 people in the first half. At the end of June 2022, the company employed 18,400 people, including 11,500 in France. True to its commitment as a responsible employee, in February 2022 Hermès paid all company employees an exclusive bonus of EUR 3,000 for their achievements for the year 2021, and decided on a significant monthly increase of EUR 100 in France. in January. In June, a second increase of 100 euros gross per month was announced starting in July for all employees in Europe.
Hermès is strengthening its commitment to education and delivery with the launch of the School of Sales Artisans in April. The company continues to roll out the Hermès school with the opening of a new Training Center in Charleville-Mézières, in the Ardennes region.
The work of people with disabilities reached 6.4%, which shows the commitment of the house to include.
On July 4, Hermès International received the Grand Prix de la Transparency 2022 in all aspects, now renamed the Transparency Awards, which rewards the quality of the regulated information of companies in the
Features are shown
For 2022, it is still difficult to assess the effects of the health cycle. The integrated photography model, the balanced distribution network, the creation of collections and the loyalty of our customers allow us to face the future with confidence.
In the medium term, despite the economic, geopolitical and monetary uncertainty in the world, the company has confirmed an important goal of financial growth at constant market prices.
Thanks to its unique business model, Hermès pursues its long-term development strategy based on creativity, mastery of knowledge and original communication.
October 20, 2022: publication of 3rd quarter 2022 earnings
February 17, 2023: 2022 results announced
April 14, 2023: announcement of 1st quarter 2023 earnings
April 20, 2023: general meeting of shareholders.