Hermes First-Half Profit Surges 55% on Asian Growth, Beating Estimates
Hermes International SCA, the French maker of luxury handbags and silk scarves, said first-half profit increased 55 percent, beating analysts’ estimates, on demand for leather goods in Asia.
Net income rose to 194.6 million euros ($246 million) from 125.4 million euros a year earlier, the Paris-based company said today in a statement on its website. That compared with the 171.2 million-euro average of five analyst estimates compiled by Bloomberg. Revenue gained 23 percent to 1.07 billion euros, Hermes reported last month.
Sales may climb as much as 12 percent this year, excluding currency swings, the maker of Birkin handbags said July 20, after second-quarter sales increased faster than analysts estimated. Demand for luxury goods is recovering as Chinese shoppers buy more high-end clothing and accessories and U.S. and European retailers restock inventories.
First-half operating profit rose 52 percent to 304.5 million euros. That beat the 259 million-euro average estimate of four analysts.
Operating profit as a percentage of sales widened to 28.3 percent from 22.8 percent a year earlier. Hermes repeated today that full-year operating margin should widen by at least 1 percentage point.
To contact the reporters on this story: Andrew Roberts in Paris at aroberts36@bloomberg.net.
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