PARIS — Sales at Hermès International rose 16 percent in the third quarter, prompting the maker of Kelly bags and silk scarves to raise its targets for sales growth and operating margin for 2011 – provided it can keep up with demand.
The luxury firm now expects to post a sales increase of 15 percent to 16 percent at constant exchange rates, versus a previous forecast of a 12 percent to 14 percent rise. “Meeting this target will be highly contingent on the business sectors’ ability to meet stepped-up demand ahead of the year-end holiday season,” it said in a statement.
Hermès chief executive officer Patrick Thomas had previously cautioned that robust demand for luxury was likely to outstrip its inventories and production capacity in the second half.
The company added that it now expects current operating margin to slightly exceed the record level achieved in 2010, versus an earlier forecast that it would remain broadly unchanged.
Revenues at Hermès totaled 683.2 million euros, or $967.2 million, in the three months ended Sept. 30, versus 590.1 million euros, or $761.2 million, in the year-ago period. During the first nine months of the year, sales totaled 1.99 billion euros, or $2.79 billion, up 19.5 percent from 1.66 billion euros, or $2.19 billion, during the same period last year. Dollar figures are converted from euros at average exchange rates for the periods to which they refer.
Hermès posted a healthy performance in its own stores — up 15.5 percent in the third quarter — with most key divisions showing strong increases. Sales of ready-to-wear and fashion accessories were up 28.9 percent, while silk and textiles registered a 21 percent increase.
Leather goods and saddlery rose by a more modest 8.1 percent in the third quarter, but Hermès reported strong demand for new models including the Lindy and Jypsière, alongside the house’s classic Kelly and Birkin bags. Wholesale revenues were up 16 percent in the third quarter. Watches led the way, with a 22.4 percent increase, perfumes were up 11.2 percent and tableware rose 15 percent.
In regional terms, non-Japan Asia registered the best performance in the quarter, up 28.9 percent, closely followed by Europe — excluding France — which posted a 21.3 percent rise. In Japan, overall sales rose 4.3 percent in the third quarter.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)