In the second quarter, sales in group-owned shops were robust (up 16.7% at constant exchange rate) and wholesale sales maintained sustained growth (up 12.9% at constant exchange rates).Sales by geographical region and by sector (at constant exchange rates unless specified otherwise) in the first half of 2013, growth was balanced in all regions of the world:
-Non-Japan Asia (+17%) maintained its momentum. Despite a less positive environment, the Chinese market continued to display great vitality.
Leatherwork & Saddlery (up 10%) is continuing its investment in production capacities, with the expansion of the two factories opened in 2012 in Isère and Charente-Maritime, and with the plan to create two new facilities devoted to artisanal activities in the Franche-Comté region.
Ready-to-wear & Fashion Accessories flush with the success of the latest ready-to-wear collections and fashion accessories, registered strong growth (up 21%). The Silk and Textiles sector, with 13% growth, is benefiting from the great variety of its collections. Perfumes (up 20%) remained on an uptrend. The new female perfume Jour d’Hermès was warmly received and Terre d’Hermès continued its growth.
The Watch sector (down 1%) was affected by the general downturn in the watch industry and the high basis for comparison of the previous year.
Other sectors (Jewellery and Art of Living) continued to show their great potentialfor expansion (+40 %). Significant events As of end of June, currency fluctuations were unfavorable and had produced a negative impact of € 53million on revenue.
Hermès International did not buy back any of its own shares during the first half of 2013, other than shares traded under the liquidity contract.
First-half results will be published on 30 August 2013. Recurring operating income is expected to increase slightly faster than revenue.
Outlook for 2013
It is difficult to make projections for the full year 2013, owing to uncertainties concerning the economic outlook and currency fluctuations. However, in light of the sales achieved in the first half of the year, consolidated sales at constant rates could slightly exceed the mid-term growth target of 10%. Depending on currency fluctuations, the current operating margin, expressed as a percentage of sales, could be close to the historical high achieved in 2012.
Hermès will continue to follow its strategy based on creativity, maintaining control over its know-how, expanding its distribution network, strengthening its production capacity and securing its sources of supply. With its new theme of the year "A sporting life!" Hermès is resolutely focusing on energy and optimism in 2013. Since its origins, the House has been tapping the sports universe to feed its passion for movement, casual elegance and excellence.
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