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Hermes sales hit €2 billion for first half

Hermes-store-japanFrench luxury group Hermes’ sales reached €2.7 billion (US$3.1 billion) for its first six months, up 11 per cent at current exchange rates and 10 per cent at constant exchange rates.

Sales grew by 11 per cent in all geographical areas, with growth being sustained in the second quarter at 9 per cent (at current exchange rates) and 8 per cent (at constant exchange rates). For the full six months, revenue rose in all geographical areas. For Asia Pacific, excluding Japan, the increase was 14 per cent to €507.7 million, driven by Mainland China. Despite the strengthening of the yen, Japan had 3 per cent growth to reach €178.9 million.

Hermes says its performance in the first half confirmed the positive momentum of its ready-to-wear and accessories, and silk and textiles lines.

Leather goods and saddlery sales rose 12 per cent, attributed to the success of the collections and the diversity of models. The ready-to-wear and accessories division saw a 10 per cent increase, the silk and textiles line was up 6 per cent while the perfumes division by 8 per cent, gaining from three product launches.

Meanwhile, penalised by a still challenging market, watch sales fell by 1 per cent but had a slight upturn in the second quarter.

Sales of other Hermes business lines (jewellery, Art of Living and Hermes Table Arts) rose 13 per cent.

At the end of June, currency fluctuations were favourable, representing a positive impact of €35 million on revenue.

Half-year results will be published on September 14. Hermes says the operating profitability at the end of last month should be close to the highest historical level achieved last year.

This story first appeared on sister site Inside Retail Asia.

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