PARIS — Hermès International and Tod’s SpA saw their bottom lines move in opposite directions during the first half of the year.
Hermès registered a single-digit increase in profits, beating analysts’ expectations, while lower financial income and a higher tax rate pressured Tod’s net income down 17.3 percent in the half.
French luxury goods firm Hermès on Wednesday said net profit increased 6.1 percent in the first half to $93.1 million. Operating profit grew 5.7 percent to $145.6 million. Dollar figures have been converted from the euro at current exchange rates.
Aaron Fisher, luxury goods analyst at Goldman Sachs in London, said the numbers "looked very good." Goldman Sachs had projected a 2 percent drop in operating profit and a 3 percent decline in net profit.
Hermès stock rose 3.6 percent in trading on the Paris Bourse Wednesday to close at $135.80.
As reported, buoyed by sales in Asia, Hermès’ first-half consolidated sales grew 2.5 percent to $567.5 million.
Meanwhile, Hermès predicted sales growth from recently opened stores. Over the next six months, additional stores will bow in Hyundai, Korea; Aix-en-Provence, France; Nuremberg, Germany, and Naples, Italy.
The firm plans to bolster its fast-growing leather goods category with an additional factory in the Ardennes region of France. Leather goods, with sales of $179.4 million, accounted for 31.4 percent of total first-half sales volume.
Also reporting its results on Wednesday, Tod’s registered net income of $12.4 million from $15 million in the year-ago half.
Tod’s noted that proceeds from its initial public offering in late 2000 have dried up, pushing its financial income down to $14,634 from $4 million the year before. Tod’s also said a higher tax burden chipped away at profitability, with its tax rate rising to 43.2 percent from 32 percent in the first part of last year.
Exclusive of interest and taxes, first-half earnings rose 20.9 percent to $22.7 million from $18.8 million.
First-half sales rose 14.2 percent to $163 million from $142.70 million, in line with preliminary figures that were released last month. Sales in Europe, its biggest market, were especially strong. Sales in Italy advanced 4.1 percent, while sales in the rest of Europe rose 34.3 percent.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast