---
title: "Defying luxury brands! Hermès' second-quarter revenue exceeded expectations, growing by 13%, while the Chinese market slowed down | Financial Report Insights"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/209863343.md"
description: "Apart from China, Hermès International Société en commandite par actions saw double-digit revenue growth in the Asia-Pacific region in the second quarter, with nearly 20% growth in Japan. While customer traffic in the Greater China region declined during the quarter, revenue in the Asia-Pacific region outside of Japan increased by 5.5%, less than half of the first quarter's growth rate but still higher than analysts' expectations. Following the financial report, Hermès' US stocks quickly turned higher, rising by more than 4% at one point"
datetime: "2024-07-25T20:52:47.000Z"
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  - [zh-HK](https://longbridge.com/zh-HK/news/209863343.md)
---

> 支持的语言: [English](https://longbridge.com/en/news/209863343.md) | [繁體中文](https://longbridge.com/zh-HK/news/209863343.md)


# Defying luxury brands! Hermès' second-quarter revenue exceeded expectations, growing by 13%, while the Chinese market slowed down | Financial Report Insights

After a number of well-known brands announced disappointing performance, Hermès became the "one red spot in a sea of green" among luxury brands this quarter, resisting the pressure of slowing sales growth in the Chinese market and delivering strong growth results that exceeded expectations.

On Thursday, July 25th local time, Hermès, headquartered in France, announced its financial data for the first half of this year. The year-on-year growth percentages in the following Hermès data are all calculated using fixed exchange rates excluding the impact of foreign exchange rate fluctuations.

**1) Key Financial Data**

> **Revenue**: Revenue for the first half of the year was 7.5 billion euros, a 15% year-on-year increase, with analysts expecting 7.45 billion euros. Second-quarter revenue was 3.7 billion euros, a 13.3% year-on-year increase, with analysts expecting 3.65 billion euros, representing an expected growth of 11.5%.
> 
> **Operating Profit**: Operating profit for the first half of the year was 3.15 billion euros, a 6.8% year-on-year increase, with analysts expecting 3.17 billion euros. The operating profit margin for the first half of the year was 42%, down from 44% a year ago, with analysts expecting 42.5%.
> 
> **Net Profit**: Net profit for the first half of the year was 2.37 billion euros, a 6.4% year-on-year increase, with analysts expecting 2.3 billion euros.

****

**2) Segment Revenue**

> **Leather Goods and Saddlery**: Revenue for leather goods and saddlery in the first half of the year was 3.215 billion euros, a 19.1% year-on-year increase. Second-quarter revenue was 2.785 billion euros, a 17.9% year-on-year increase, with analysts expecting an 11.5% increase.
> 
> **Clothing and Accessories**: Revenue for clothing and accessories in the first half of the year was 2.162 billion euros, a 15.5% year-on-year increase. Second-quarter revenue was 1.101 billion euros, a 15.1% year-on-year increase, with analysts expecting a 14.7% increase.
> 
> **Silk and Textiles**: Revenue for silk and textiles in the first half of the year was 436 million euros, a 1.5% year-on-year increase. Second-quarter revenue was 194 million euros, a 5.6% year-on-year decrease, with analysts expecting a 0.5% decrease.
> 
> **Watches**: Revenue for watches in the first half of the year was 308 million euros, a 0.2% year-on-year decrease. Second-quarter revenue was 142 million euros, a 4.9% year-on-year decrease, with analysts expecting a 3.45% increase.
> 
> **Perfumes and Cosmetics**: Revenue for perfumes and cosmetics in the first half of the year was 259 million euros, a 4.9% year-on-year increase. Second-quarter revenue was 129 million euros, a 5.6% year-on-year increase, with analysts expecting a 1.25% decrease.
> 
> **Other Businesses including Jewelry and Home Products**: Revenue for other businesses in the first half of the year was 967 million euros, an 18.7% year-on-year increase. Second-quarter revenue was 462 million euros, a 13% year-on-year increase.

**3) Segment Market Revenue**

> **France**: Revenue in France for the first half of the year was 680 million euros, a 14.7% year-on-year increase. Second-quarter revenue was 368 million euros, a 15.1% year-on-year increase, with analysts expecting a 12.6% increase
> 
> **Europe including France**: In the first half of the year, revenue in Europe reached 1.651 billion euros, a year-on-year increase of 16.4%. Among them, revenue in the second quarter was 894 million euros, a year-on-year increase of 18.2%, while analysts expected an increase of 11.8%.
> 
> **Japan**: Revenue in Japan in the first half of the year was 693 million euros, a year-on-year increase of 22.4%. Revenue in the second quarter was 336 million euros, a year-on-year increase of 19.5%, slightly higher than analysts' expectations of 19.6%.
> 
> **Asia-Pacific region excluding Japan**: Revenue in the Asia-Pacific region excluding Japan in the first half of the year reached 3.521 billion euros, a year-on-year increase of 9.9%. Revenue in the second quarter was 1.601 billion euros, a year-on-year increase of 5.5%, lower than analysts' expectations of 4.75%.
> 
> **Americas**: Revenue in the Americas in the first half of the year was 1.329 billion euros, a year-on-year increase of 12.6%. Revenue in the second quarter was 715 million euros, a year-on-year increase of 13.3%, exceeding analysts' expectations of 11.2%.

**4) Performance Outlook**

> In the medium term, despite global economic, geopolitical, and currency uncertainties, Hermès Group still confirms its ambitious goal of revenue growth calculated at fixed exchange rates.
> 
> After the financial report was released, Hermès US stocks fell nearly 0.8% when hitting a daily low in early trading, then rose during midday trading, surged rapidly near noon, hit a daily high at noon with an intraday increase of 4.4%, and later narrowed the gain to just over 1.1% at the close, rebounding after two consecutive days of decline, breaking away from the closing low since February 6 set on Wednesday.

## Revenue in other regions in the second quarter grew at a double-digit rate except for China and other Asia-Pacific regions, with a decline in customer traffic in Greater China

> In the first two quarters of this year, Hermès' revenue maintained a growth rate of over 10%, with the largest business segment leather goods and saddlery growing by at least 19% each quarter. It maintained relatively stronger growth in major markets around the world, including its largest revenue source market - the Asia-Pacific region excluding Japan, which includes China. Axel Dumas, Hermès' Executive Chairman, stated: "Against a more complex economic and geopolitical backdrop, the solid performance in the first half of the year reflects the strength of the Hermès model."
> 
> However, for Hermès, compared to major markets like Europe and the United States, the slowdown in growth in Asian regions such as China did drag its performance. In the second quarter, Hermès saw double-digit revenue growth in Europe, the Americas, and Japan, with Japan's growth approaching 20%, while the growth rate in the Asia-Pacific region was less than 6%, significantly slower than the first quarter and only half of the first quarter's growth rate of 14%.
> 
> Hermès commented in the financial report that apart from Asia affected by fluctuations in customer traffic in Greater China, other regions globally showed strong momentum. Regarding the slowdown in growth in the Asia-Pacific region in the second quarter, Hermès explained that after the first quarter following the Lunar New Year, customer traffic in Greater China declined, and this year's growth was affected by a high base effect after the outstanding performance in the Asia-Pacific region following the lifting of pandemic restrictions in the second quarter of last year.

Wall Street News once mentioned that due to the "defeat" in the Chinese market this year, European luxury brands that have announced their financial reports since last week have either experienced a slowdown or a decline in sales growth. Compared to these brands, Hermès is considered a "star performer" among overseas high-end brands in the Chinese market.

Last week, Swiss fashion watch manufacturer Swatch announced a sharp 70% decrease in net profit for the first half of the year, attributing it to the decline in luxury goods demand in the Chinese market; British Burberry expects to incur operating losses in the first half of this year, with full-year operating profit below guidance, while German Hugo Boss has lowered its sales and profit guidance for this year due to weak consumer demand in China and other regions worldwide; Swiss Richemont saw a slight 1% increase in sales in the first quarter, but sales in the Greater China region dropped by 27%.

On Tuesday this week, the world's largest luxury goods group LVMH announced that organic sales growth in the second quarter slowed to 1%, falling short of expectations. In the quarter, LVMH saw organic sales growth in Europe, the Americas, and Japan, but a 14% decline in non-Japanese Asian regions including China partially offset the strong impact of Chinese tourists' overseas consumption. On Wednesday, LVMH's long-time rival Kering announced an 11% year-on-year decline in revenue for the first half of the year, with revenue in the Asia-Pacific region outside Japan dropping by 22%

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