French luxury brand Hermès has managed to increase its profits 6.3 % in the first six months of 2014, mainly thanks to decent Asian sales, whereas competitors struggled.
Hermès' turnover grew 7.9 % to 1.91 billion euro. If exchange rates remained level, the increase would have been 12 %. Operational profit grew 6.3 %, from 584 million euro to 621 million euro, while analysts had expected a 617 million euro profit.
"Hermès is the most defensive name in the luxury space: a long waiting list and a deliberate effort to starve demand and maintain a rarity effect make it so that Hermès growth and margin performance is more stable than peers", Luca Solca, an analyst at Exane BPN Paribas, said.