PARIS — Hermès International reported on Tuesday that its second-quarter sales beat expectations with a 17.9 percent jump, thanks to strong momentum in the United States and China.
The French luxury firm also raised sales guidance for 2011, saying it now expects revenue growth of 12 to 14 percent at constant exchange rates. This compares with a previous forecast of average annual sales growth of 8 to 10 percent at constant exchange rates, but remains below the 18.9 percent achieved last year.
Revenues rose to 668.4 million euros, or $961.9 million, in the three months ended June 30, from 566.9 million euros, or $723.3 million, in the year-ago period, representing an increase of 21.8 percent when stripped of the impact of currency fluctuations. Dollar figures are calculated at average exchange rates for the periods concerned.
Hermès, which will publish full first-half results on Aug. 31, said operating profit should register a “significantly” higher growth than sales compared with the first half of 2010.
The company estimated the operating profit margin rose 4 to 5 percent versus the same period last year, including the gain on the sale of its 45 percent stake in Jean Paul Gaultier to Spanish group Puig in May, which generated accounting profits of 30 million euros, or $43 million.
In 2011 as a whole, the group expects the operating profit margin to be “close to the record high achieved in 2010,” Hermès stated. Last year, the margin widened by 3.6 percentage points to 27.8 percent, its highest level since Hermès went public in 1993.
In the second quarter, sales rose 24.4 percent in Asia Pacific, excluding Japan, which posted a 0.5 percent increase in revenues despite the impact of the earthquake and tsunami that hit the country in March. Sales rose 21.5 percent in the Americas and were up 20.8 percent in Europe, fueled by a strong performance in France and the acquisition of two concessions in Moscow in May.
Sales in the company’s own stores were up 17.3 percent in the quarter, while the wholesale channel posted a 15.4 percent increase.
All sectors posted gains, led by ready-to-wear and other accessories, up 34.3 percent, and silk and textiles, up 27.2 percent. Leather goods and saddlery, which accounted for around half the company’s revenues during the period, rose 9.1 percent.
Perfumes were the only pocket of weakness, up just 4.1 percent in the quarter despite the launch of the “Un Jardin sur le toit” fragrance at the beginning of the year. This contrasted sharply with tableware, another category sold outside the company’s own stores, which posted a 38.3 percent jump. Hermès has been placing a growing emphasis on home wares, which represent 40 percent of the offer at its new Paris store on the Left Bank.
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)
Breaking News: @hedislimane joins @celine as its new artistic, creative and image director. One of fashion’s preeminent image-makers and trendsetters, Slimane is to join the LVMH brand on Feb. 1 and unveil his first fashion proposition for men and women next September during Paris Fashion Week. It marks a major homecoming for Slimane, who cemented his reputation – and influenced men’s tailoring for more than a decade – as the designer of Dior Homme between 2000 and 2007. He went on to reinvent and ignite the house of Yves Saint Laurent, which he rechristened Saint Laurent, between 2012 and 2016 – all the while maintaining a close relationship with the Arnault family, which controls LVMH and Dior. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
“Personally I believe the Eighties have been the richest and more vivacious period for international fashion,” Giorgio Armani said when asked what his favorite decade of fashion is. It was a moment of disruption and experimentation and only thinking back to the first years of that decade is always an emotion for me, for what they have meant to me and my work.” The influence is clear in @giorgioarmani spring 2018 collection, pictured here, which was full of bright colors and unexpected prints. Read more about which decades designers loved most on WWD.com #wwdfashion #wwddecades (📷: @aitorrosasphoto)
For Lady Gaga’s only Italian show on her “Joanne World Tour,” the singer wore a range of @versace_official outfits. The standout piece: this custom-made bodysuit inspired by the brand’s spring 2018 collection. #wwdfashion (RG: @ladygaga)
@_camillaruth_ is expanding on the wellness-craze concept with @westbourne – a new NYC restaurant that’s both a healthy-minded café as well as a business that gives back to the community. Marcus works with the Robin Hood foundation to give back to The Door, a non-profit providing youth development services, and also hires employees through The Door. Read our full interview with Marcus on giving back through food on WWD.com. #wwdeye (📷: @lexieblacklock)