Luxury brand Hermes H1 profit climbs 13.9%

30 Aug '13

3 min read

The Group's consolidated sales in the first half of 2013 amount to €1,767.2 million, up 11.0% (+14.4% at

Constant exchange rates).

Recurring operating profit and net profit rose by almost 14%.

Sales by geographical region

(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. The Chinese market continued to display great vitality.

- Japan (+8%) confirmed the turnaround observed in the first quarter, and came back on track to sound growth.

- France (+13%) and the rest of Europe (+14%) posted remarkable performances in a difficult economic environment.

The Americas (+17%) had an excellent half-year.

Sales by sector

(at constant exchange rates unless specified otherwise)

-Demand for Hermès products remains strong, impelled by great creativity. The expansion of the growth relays bore fruit. Advancement of bag sales remains constrained by production capacity.

-Leatherwork & Saddlery (+10%) is continuing its investments, with the expansion of two factories opened in 2012 in Isère and Charente, 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 (+21%).

-The Silk and Textiles sector (+13%) is benefiting from the great variety of its collections.

-Perfumes (+20%) remained on an uptrend. The new female perfume Jour d’Hermès was warmly received and Terre d’Hermès continued its growth.

-Watches (-1%) were 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 potential for expansion (+40%).

Operating margin reaches 33.1% of sales

-Operating profit rose by 14.3% to reach €584.1 million compared to €510.9 million in the first half of 2012. The operating margin (33.1% of sales) improved by one point, due primarily to the positive impact of foreign exchange hedgings.

-Consolidated net profit amounts to €381.7 million, up 13.9%.

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