Hermès International revenue jumps 22% in H1
Hermès International announces sales for the six months to 30 June 2011. Consolidated revenue in the first half of 2011 totalled €1,305.5 million, a rise of 22% at current exchange rates and of 21% at constant exchange rates. The excellent performance registered during the first three months of the year persisted throughout the second quarter.
During the second quarter, sales remained strong both for the Group's own stores (up 23% at constant exchange rates) and in the wholesale segment (up 19% at constant exchange rates).
Sales by sector and region
(at constant exchange rates, unless otherwise indicated)
Growth was driven by the United States and China, with solid momentum across all geographic regions other than Japan, where revenues remained stable in spite of the catastrophic events in March. The distribution network continued to expand with the opening of six new branches.
Sales growth was robust in France (21%), propelled by the success of the new store on rue de Sèvres in Paris opened in late 2010, and in the rest of Europe (20%), which benefited from the acquisition of two concessions in Moscow in May.
Growth was exceptionally high in the Americas (up 34%) and in non-Japan Asia (up 30%).
All business sectors delivered substantial growth, underpinned by ongoing innovation and creativity.
In Silks & Textiles, sales moved up 29%, buoyed by the sector's lavish collections and persistently high communication expenditure.
In Leather Goods & Saddlery, sales advanced by 15% under the impetus of small leather goods and leather bags.
In Perfumes, sales momentum was resilient, following the launch of Un Jardin sur le toit during the first quarter, with growth of 18%.
Clothing and Accessories registered a 31% rise owing to the success of the spring-summer ready-to-wear collections and to fashion accessories.
Lastly, in Watches (up 30%), Jewellery, (up 30%) and Tableware (up 25%), sales staged a spectacular rebound.
First-half results will be published on 31 August 2011. Operating profit should register a significantly higher growth than sales. After the gain on the disposal of the equity investment in Jean-Paul Gaultier House, the pre-tax profit margin is expected to register a strong growth compared to the first half of 2010, with a four to five percentage point rise.
Outlook for 2011
It is difficult to make projections for the full year 2011 owing to uncertainties over the economic outlook and currency fluctuations.
However, given the excellent, better-than-expected performance in the second-quarter, the target range for consolidated revenue growth over the full year at constant exchange rates is 12% to 14%. The underlying operating margin is expected to be close to the record-high achieved in 2010.
Hermès will not deviate from its long-term strategy of maintaining control over its know-how and distribution network. In 2011, Hermès will continue to invest in expanding its distribution network and plans to open more than ten branches.
The theme for 2011, "Hermès Contemporary Artisan", focuses on the excellence and authenticity of the expertise in craftsmanship that is the foundation on which the house has built its success over time, and that will continue to underpin it in the future.