Hermès shows off good results

Hermès shows off good results

French luxury group Hermès has had sales of 1.8 billion euro in the first six months of 2013. That is 11% more than in the same period of 2012 and also more than expected. At constant exchange rates it would have been 14.4%, but the dropping yen have caused the results to weaken.

Especially strong retail sales

Hermès especially had strong sales in its shops. At constant exchange rates sales rose by 16.7%. In wholesale sales for the company went up by 12.9%.

 

The growth was also visible on a wide geographic scale. At constant rates sales in its home country went up 13%, in the rest of Europe 14%. In Asia (excluding Japan) the rise was even bigger at 17%, the same result as both Americas.

 

Only Japan lagged behind a bit, with a progress of about 8%. All in all 812 million euro of sales came from Asia, on a total of 1.8 billion euro for Hermès.

 

Bigger demand than offer

The good results were also present in almost all product groups. Only for wristwatches there was a small decline of 1%, in accordance with the rest of that market. This was all because of disappointing results in the first trimester. Between early April and end of June sales grew by 3%.

 

The branch of leather goods grew by 10%, but that could have been more, because production capacity had to be limited. The company is therefore opening two extra factories for artisanal products in Franche-Comté. The perfume department grew by 20%, jewellery by no less than 40%.

 

Year forecast: +10%

On 30 August Hermès will announce the financial results for the first six months of the year. They will probably rise slightly more than sales.

 

For the complete year 2013 the company is expecting sales to grow slightly more than the target of 10% the company has set on a medium term. The operational margin will probably come close to the historical heights of 2012.

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