Hermes revenue rises as Asia sales shine

Australian dollars in Sydney, Friday, Jan. 15, 2016. (AAP Image/Joel Carrett) NO ARCHIVING

Adds information on first-half sales in Asia and the company’s expectations for first-half operating profit

French luxury-goods company Hermes International SCA (RMS.FR) said Friday that second-quarter revenue rose due to increases in all its geographical areas.

Quarterly revenue was 1.46 billion euros ($1.7 billion), compared with EUR1.36 billion the year previous.

The company said first-half sales in Asia, excluding Japan, rose 15% with "positive momentum in continental China and the whole region."

Luxury-goods companies have seen a resurgence in revenue as domestic spending picks up in the Asia-Pacific region.

The maker of the iconic Birkin and Kelly bags said currency fluctuations had a negative effect of EUR165 million on revenue at the end of June.

Hermes confirmed its medium-term outlook of revenue growth at constant-exchange rates "despite growing economic, geopolitical and monetary uncertainties around the world."

Hermes reports its first-half results on Sept. 12 and the company said current operating profitability at the end of June–excluding non-recurring items–benefited from healthy growth and the accretive effect of foreign exchange. "It should be close to the record level reached in the first half of 2017," the company said.

Source: Read Full Article