Huge Japan boost for Hermes
21/07/2009
Paris-based leathergoods brand Hermes has reported a rise in profits of 12% for the second quarter of 2009. The company said that a surge in demand in Asian markets for its Kelly bag, inspired by actress and princess the late Grace Kelly. The Kelly bag costs around EUR 4,000 at retail in most markets.
Revenue reached EUR 446.6 million, up from EUR 398.1 million in the second quarter of last year. For leathergoods and other leather accessories, the most important scetor for Hermes, the increase in sales was 33%. According to Bloomberg, one of the main reason for this is that Hermes doesn’t discount its leathergoods and customers often have to wait several years for in-demand models to become available.
Hermes said in a statement that own-store sales had been particularly strong, with demand very healthy in Japan. Revenue in Japan, rose by 24%, recovering from last year’s slump. Sales in the rest of Asia advanced 37%.
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