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Hermes International SCA said Friday that sales momentum persevered into the first part of the year, propelled by increased tourism and new stores.
The French luxury fashion home
RMS,
maker of Birkin handbags, booked sales of three.38 billion euros ($3.73 billion) in the first quarter, rising 23% at constant currency from EUR2.77 billion in the same length last year. The pace of progress was the same as in the last quarter of 2022.
Analysts had forecast quarterly sales of EUR3.17 billion, according to a poll of esimates compiled by FactSet.
Hermes, which had been less affected than luxury associates by China’s now-ended pandemic restrictions, reported persevered momentum in Asia, thanks to a moral Lunar New Year and the outlet of a new store in the Chinese language city of Nanjing. Similarly, sales in the U.S. had been spurred by the outlet of the group’s 40th store in the country at Naples in the state of Florida.
In Europe, sales had been boosted by greater tourism flows, notably in France, Italy and the U.Okay., Hermes said.
Wholesale earnings rose 26% on year, aided by the recovery in travel retail, the company said.
The group backed its “ambitious” medium-length of time target for organic earnings progress, pointing to its integrated model and consumer loyalty.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby