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Hermès Q3'19 revenue up 18.2% YOY on growth across all geographies, segments

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Hermès Q3'19 revenue up 18.2% YOY on growth across all geographies, segments

French luxury goods producer Hermès International SCA on Oct. 24 reported an 18.2% year-over-year increase in revenue during the third quarter as sales grew across all geographies and business categories.

For the quarter ended Sept. 30, consolidated revenue came in at €1.73 billion, up from €1.46 billion in the year-ago quarter and ahead of the S&P Global Market Intelligence mean consensus estimate of €1.67 billion, with three analysts reporting. At constant exchange rates, revenue grew 15% year over year.

The owner of the Birkin and Jean-Paul Gaultier brands said revenue grew across all geographies, led by a 24.7% increase in Asia despite the impact of Hong Kong protests. Revenue in the Americas grew 15.3% and 10.5% in Europe.

Among business categories, the ready-to-wear and accessories segment reported a 24.5% increase in sales, leather goods and saddlery segment reported 15.1% growth and silk and textiles recorded a 20.1% rise. Sales of other Hermès items, which include jewelry and home products, grew 30% during the quarter. In addition, perfumes and watch businesses recorded 2.5% and 17.4% revenue growth, respectively.

Consolidated sales for the first nine months of 2019 came in at €5.01 billion, a 16.1% year-over-year increase from €4.32 billion. Favorable currency fluctuations at the end of September reflected a positive impact of €136 million on revenue, Hermès said.

During the nine-month period, the company bought back €41 million worth of shares.

"Despite an uncertain international environment, Hermès is experiencing exceptional sales growth over the first nine months reflecting our creative drive, excellent know-how and customers' adhesion," Executive Chairman Axel Dumas said in a statement.

The company affirmed its outlook for revenue growth at constant exchange rates in the medium term.

Shares of Paris-listed Hermès were up 1.9% at €637.40 apiece during morning trading.