Prime Highlights
- Hermes posts 6.7% currency-adjusted sales growth to €4.1 billion in the second quarter.
- Leather goods division, nearly half of revenue, grows 10% during the quarter.
Key Facts
- France sales grow 6%, building on improved Paris store momentum.
- Asia-Pacific ex-Japan revenue rises 2.5%, holding steady with Q1 pace.
Background
French luxury group Hermes reported accelerating growth in the second quarter, with sales of handbags, silk scarves and perfume rising 6.7% in currency-adjusted terms to €4.1 billion ($4.67 billion), up from 6% growth in the first quarter and in line with expectations.
Hermes, known for carefully managing production and sales to preserve exclusivity, has remained one of the steadiest performers in the luxury sector. The group said trading conditions in the Middle East stabilized during the quarter, while tourism in France picked up, supporting stronger momentum.
CEO Axel Dumas said the company’s Paris stores saw improved momentum in the second quarter, with tourist traffic in the country strengthening.
Hermes’ leather goods division, contributing close to half of overall revenue, posted 10% growth for the quarter, just under the Visible Alpha consensus estimate of 10.8%.
In Asia-Pacific excluding Japan, the group’s largest sales region, revenue grew 2.5% in currency-adjusted terms, holding steady with the first quarter’s pace. France posted 6% growth, building on the first quarter.
Dumas said the Chinese market is showing signs of stabilizing and expressed satisfaction with the results, noting that Hermes continues to hold up well amid shifting global economic conditions. The results follow updates from industry peer LVMH, as the wider luxury sector continues adjusting to changing demand patterns worldwide.
