Hermes sales defy worst of the downturn

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Luxury goods group Hermes announced yesterday that its revenue grew 8.2% in 2001, boosted by a strong performance in Japan.

Hermes said revenues rose to Eur1.23bn ($1.06bn) from Eur1.16bn ($1bn) in 2000, spurred by a 23% rise in Japanese sales following the opening of new flagship store in Japan in June 2001.

The company said its strong performance inside Japan had helped it shrug off the worst effects of the general downturn in the industry, brought on by a slump in Asian travel and tourism since September 11.

Hermes said fourth-quarter sales were down 2.5% but remained "close to the very high level of 2000, with fine growth in retail sales of 7% in this period."

Most luxury goods retailers issued profit warnings after Septermber 11 and experienced tumbling sales at the end of last year. Bulgari recently reported a 6% drop in fourth quarter sales together with a 13% rise in sales for the year. LVMH said its total sales increased by 5% last year but DFS sales were down by 10% year-on-year and by 33% in the fourth quarter. Swatch Group posted a sales rise of 0.7% in local currencies to SFr4.18bn ($2.43bn) in 2001, but down 1.9% down when translated into Swiss francs.