Hermés raises full-year sales target
French luxury goods brand Hermés has reported quarterly sales that beat expectations, led by growth in the Americas and Asia, and has raised its full-year targets.
Revenue may rise between 15% and 16% at constant rates of exchange, the Paris-based company said in a statement. In August the company predicted an increase of as much as 14% on the same basis for the period. The new target is contingent on the ability to meet higher demand during the year-end holiday season, the company said.
Third-quarter sales increased 16% to EUR683.2 million, beating the EUR662 million average of three analyst estimates compiled by Bloomberg. Stripping out the effect of currency fluctuations, sales advanced 18%.
Sales of leathergoods and saddlery, Hermés’ largest product category, advanced 10% , excluding currency moves. Apparel and fashion accessories revenue rose 32%, while silk and textiles sales gained 24%.
Full-year current operating margin is expected to be “slightly” higher than in 2010, Hermés also said.
