Hermès has reported strong sales growth in the fiscal first half, with Asian markets, especially Japan, recording solid performance.

Revenue for the six months ended June amounted to €8.2 billion (US$9.39 billion), up 6 per cent at constant exchange rates and 2 per cent at current exchange rates. Second-quarter sales were up 7 per cent at constant exchange rates to €4.1 billion.

All regions recorded growth, except the Middle East, due to the impacts of the ongoing conflict.

In Asia, Japan recorded the biggest improvement, with sales soaring 11 per cent in constant currency. This performance was supported by strong traffic and the loyalty of local customers. Following the expansion and renovation of the Hilton Plaza East store in Osaka in May, the house inaugurated its new store in Nagoya in June. 

Other Asian markets posted growth of 2 per cent, notably in Greater China and South Korea. The company opened a store in Hanoi in January, followed by the new Sanlitun store in Beijing and the reopenings of the Hong Kong Elements and Taipei Sogo Fuxing stores in April.

The Americas recorded sales growth of 15 per cent, France improved 2 per cent, and Europe excluding France grew 9 per cent. 

The Middle East saw sales fall 4 per cent. The company said the market showed resistance in an unstable geopolitical environment, with a gradual recovery in the second quarter.

Axel Dumas, executive chairman of Hermès, said the solid results reflect the strong desirability of the company’s products and the trust of its clients. 

“Convinced by the strength of our unique artisanal model and in control of our key balances, we look to the second semester with confidence,” Dumas added.

By category, leather goods and textiles segments both recorded sales growth of 10 per cent. Ready-to-wear and accessories saw a modest 2 per cent uplift, while perfume and beauty posted a 4 per cent decline. Sales of watches remained flat.

On the bottom line, recurring operating income was slightly up to €3.4 billion, while consolidated net profit was unchanged at €2.2 billion. 

In the medium term, the group confirms its outlook for revenue growth at constant exchange rates, despite the current economic, geopolitical and monetary uncertainties.