French luxury brand Hermès has exceeded its third quarter forecast with a 10.4 % turnover growth, to 990.6 million euro. The company did warn for slightly lower operational margins however.
Chinese growth remains
Asian turnover (excluding Japan) for the scarves and hand bag manufacturer was up 10.2 %, lower than in its previous quarters, but Chinese demand for Hermès is still growing. Turnover also grew in other regions: North and South America grew 16.9 %, Japan 16.4 % and Europe 7.4 %. Its turnover on home territory, France, also grew 7.4 %.
The leather-wear branch experienced the largest growth, up 19.3 %. Perfume sales went up 11.8 %, while ready-to-wear and accessories grew 9.1 %. Watch sales dropped 14.4 % as a result of smaller Chinese supplies. The company still feels the backlash from stricter Chinese anti-corruption legislation.