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Hermès Net Jumps 13.9% in H1

Operating margin improves by one point to 33.1 percent of sales.

PARIS — Net profits at Hermès International jumped 13.9 percent in the first half to reach 381.7 million euros, or $501.2 million.

The company credited a positive impact from its currency hedging for a one point improvement in its operating margin, which reached 33.1 percent of sales.

Operating profits in the six months to June 30 improved 14.3 percent to total 584.1 million euros, or $767 million.

 

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While reiterating its guidance for 2013 margins, expected to be close to the all-time high reached in 2012, the company tempered its sales forecast, saying the figure could “slightly” exceed the mid-term growth target of 10 percent.

 

Hermès had reported revenues last month. In the second quarter, they rose 11.8 percent to  910.4 million euros, or $1.18 billion. 

In the half, sales gained 11 percent to 1.77 billion euros, or $2.32 billion. Stripping out the impact of currency, the increase stood at 14.4 percent.

Dollar figures are converted at average exchange rates for the periods in question.

Sales in the six-month period rose 17 percent in the Americas and Asia, 13 percent in France, 14 percent in the rest of Europe and 8 percent in Japan.

By product category, ready-to-wear and fashion accessories gained 21 percent, perfumes 20 percent, silk and textiles 13 percent, and leather and saddlery 10 percent. Watches slipped 1 percent, reflecting the downturn in the sector and tough comps, Hermès said. Sales of  other products — including jewelry and home wares, increased 40 percent.

 

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