Strong Sales in Leather Save Hermès in 2nd Quarter
PARIS — Sales at French luxury group Hermès International pulled back slightly in the second quarter but, propelled by a nearly 19 percent increase in the firm’s leather goods business, moved ahead in the six...
PARIS — Sales at French luxury group Hermès International pulled back slightly in the second quarter but, propelled by a nearly 19 percent increase in the firm’s leather goods business, moved ahead in the six months.
Second-quarter sales tallied $277 million, down 1.7 percent compared with $282 million in 2001. Excluding currency fluctuations, sales were up 3.3 percent in the period. Dollar figures are converted from the euro at current exchange rates.
For the half, sales were up 2.5 percent, to $572.2 million, and up 6.1 percent on a comparable basis.
"Hermès’ first-half sales were slightly below our expectations, and of the market’s expectations," said Andrew Gowan, an equities analyst at Lehman Bros. in London. "Hermès highlighted the World Cup effect and exchange rates as causes, phenomena similarly identified by its peers.
"The first half was weaker than expected for Hermès but far from disastrous; it stacks up with the rest of the industry," he continued.
Leather goods, Hermès’ largest merchandise segment, generated sales of $179.4 million, up 18.8 percent, during the half, and accounted for 31.4 percent of total revenues. Other product segments, in descending order of semiannual revenues were: ready-to-wear, up 2.3 percent to $80 million; silks, down 11.2 percent to $70.6 million; lifestyle products, up 10.4 percent to $69.7 million; watches, down 1.1 percent to $51.6 million; other Hermès items, including agendas, enamel products, jewelry, gloves, hats and shoes, down 5.7 percent to $49.6 million; fragrances, down 6.1 percent to $26.1 million; tableware, up 1.6 percent to $21.7 million, and other activities, including John Lobb shoes, down 28.1 percent to $23.1 million.
Broken down geographically, Asian sales advanced a robust 19.4 percent to $252.5 million in the half and those in Europe were up 0.5 percent to $215.8 million. Revenues in the Americas were off 7.4 percent to $83.2 million while other categories, including travel retail, dropped 16.1 percent to $20.6 million.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast