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Hermes bags strong sales growth in Q2
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An exterior view of the Hermes store in Sloane Street in Knightsbridge (Shutterstock/Chrispictures)
F
rench luxury goods giant Hermes on Friday posted strong sales growth in the three months to June, driven by "positive momentum" in Asia.
Known for its signature Birkin bags named after the British singer, and for brightly coloured silk scarves, Hermes saw turnover jump 7.2 percent to 1.45 billion euros ($1.7 billion) in the second quarter.
Sales grew 12 percent at constant exchange rates, "driven by the continuing momentum across all business lines and in all geographical areas," Hermes said in a statement.
"Asia ... continued its outstanding performance, with positive momentum in continental China and the whole region," it added.
The figures reflected a stronger performance than in the first quarter of the year, and also than the whole of 2017.
Analysts had forecast the company's sales to grow 1.44 billion euros.
Unlike many high street fashion brands, which are suffering from what analysts dub the "retail apocalypse" as online giants take over, Hermes saw its in-store client base grow 11 percent.
"We have had a very strong quarter, with an acceleration of growth," Hermes CEO Axel Dumas told reporters in a conference call.
Dumas said he expected first half results to rise to "near the record level reached in the first half of 2017", when the operating margin stood at 34.3 percent of sales.
Read also: Why Birkins are good investments: For divorced women, it can solve financial woes
Hermes will release its full first half results in September.
According to Friday's statement, sales from January to June rose 11 percent at constant exchange rates, and 5 percent at current exchange rates, to 2.9 billion euros.
