By
Reuters
Published
Aug 31, 2012
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Hermes lifts full-year sales target after strong H1

By
Reuters
Published
Aug 31, 2012

French luxury goods maker Hermes on Friday slightly raised its target for annual sales growth after posting double-digit increases in revenue and profits across most of its markets for the first six months of the year.



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Hermes, in which the billionaire owner of rival LVMH Bernard Arnault owns 22.3 percent, is now targeting 12 percent annual growth at constant exchange rates, up from a previous target of 10 percent.

The company had said its operating margin for 2012 would however likely fail to match its all-time high in 2011 as it continues to develop its strategy of developing its distribution network.

First-half net profits grew 28 percent, adjusting for a one-off gain from asset sales in 2011, to 335.1 million euros ($418.81 million), Hermes said.

The growth was driven by big-spending Asian markets like China, Singapore and Hong Kong, which defied slowdown fears with 25 percent sales growth in the first half. All product lines, from leather goods to jewellery and watches, grew at double-digit rates.

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