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Hermes International first-half net profit rises 9 percent

Hermes International first-half net profit rises 9 percent

Hermes International SA, the maker of Birkin handbags and high-end scarves, said Friday that first-half net profit rose 9 percent as advertising efforts encouraged sales.
The French luxury goods company reported a net profit of euro128.1 million (US$174.3 million), compared with euro117.5 million a year earlier.
The weak dollar had an "appreciable impact" on net profit, which would have risen 20 percent at constant exchange rates, Hermes said.
Sales in the first half rose 2.9 percent to euro721.1 million (US$981.4 million).
Operating income rose to euro185.8 million (US$252.9 million) from euro184.6 million.
All divisions delivered growth, Hermes said.
Silks and textiles sales rose 14 percent over the period, and tableware sales were 20 percent higher than the previous year. Ready-to-wear and accessories sales rose 11 percent, and perfumes delivered a "robust" 12 percent increase after the launch of Terre d'Hermes, Hermes said of the first half.
Leather goods sales increased 4 percent in the first half, with an 11 percent jump in bag sales, while watch revenues increased 5 percent.
Hermes said it plans to invest in its distribution system in the second half, with a dozen branches to be opened or renovated, including the expansion of its Paris store on rue du Faubourg Saint-Honore.


Updated : 2021-01-17 14:27 GMT+08:00