Hermes reports 50% first-half profit increase
France-based luxury goods retailer Hermes International has reported a 49.5% jump in profit for the first-half of 2011, thanks to a 22% growth in revenues and higher margins.
For the period, consolidated net income increased to EUR290.9 million from EUR194.6 million a year ago. This year's result included a gain of EUR29.5 million from the disposal of the company’s share in Jean-Paul Gautier Group.
Revenues for the six-months were EUR1.31 billion, up 22% from the prior year on the back of “solid” momentum across all geographic regions, primarily in the US and China.
Sales in France rose 21%, while sales in the Americas increased 34%and, in Asia excluding Japan, sales grew 30%. On a constant exchange rate basis, sales increased 21% year-over-year.
By business sectors, leathergoods and saddlery registered a 15% growth while silks and textiles reported a 29%rise in revenues.
Looking forward, the company confirmed its full-year target announced in July of 12 to 14% sales growth at constant exchange rates and a flat operating margin from 2010’s margin of 27.8%.
