French luxury brand Hermes has posted a robust second quarter performance with a 22 per cent sales rise driven by its Asian success.
Hermes’ second quarter sales totalled 814.5 million euros (US$1 billion), exceeding the forecasted 799.3 million euros (US$981 million).
In Asia, where it enjoyed high demand, the sales soared 27 per cent as more and more newly wealthy Asians splashed out on luxury goods despite the economic slowdown. That figure excluded the Japanese market where revenue decreased 1.1 per cent.
Sales were also up in the US, by 8.2 per cent. Total sales in Europe increased 12 per cent, however, it is slower compared to the 21 per cent sales gain in the first quarter.
Hermes jewellery and art of living products turned in a remarkable performance with 50 per cent sales increase, followed by watches at 23 per cent and ready-to-wear and fashion accessories at 21 per cent.
Silk and textiles also delivered growth with 16 per cent sales increase and leather goods with 7.4 per cent.
Bullish for the remainder of the year, Hermes said it expects to consolidate revenue growth of 10 per cent by expanding its distribution network, boosting production capacity and securing control over sourcing.
GB
