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Silks & Textiles segment delivers 14% growth at Hermès Group

04 Sep '07

3 min read

Hermès Group sales amounted to €721.1m in the first half of 2007. At constant exchange rates, sales growth was 8.2% following a 10% jump in the second quarter. The extremely strong currency impact held down growth at current exchange rates to 2.9%.

The distribution network expanded with the opening of four new branches: in Osaka (Japan) Hangzhou (China) New York Wall Street (USA) and Seoul (Korea).

At constant exchange rates, sales growth during the first half was particularly robust in France (10%), in the rest of Europe (12%), in the Americas (9%) and in Asia excluding Japan (12.5%). In Japan, in a lacklustre climate, sales advanced by 2% following a 5% increase in the second quarter. All segments delivered growth - Growth was fuelled by Silks & Textiles (up 14%), Tableware (20%) and “Other Hermès sectors" (18%), driven by Jewellery and Art of Living.

Sales of Ready-to-wear and Accessories rose by 11% and Perfumes delivered a robust 12% increase, after the launch of Terre d'Hermès during the first half of 2006.

Leather Goods and Saddlery expanded 4%, with an 11% jump in leather bags, while Watches moved up 5%.

Net income increased by 9%
Operating income amounted to €185.8m from €184.6m in the first half of 2006. It reflects continued significant advertising efforts and a €7.2m gain on the sale of the remaining Leica Camera AG convertible bonds, which were fully impaired in 2006.

Consolidated net income was €128.1m compared with €117.5m in the first half of 2006,up 9 %. The net margin was 17.8 % compared with 16.8 % as at end of June 2006.

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