Hermes H1 turnover increases 12 percent

REPORT_ For the first half of 2014, the group’s consolidated turnover is equal to 1, 906.9 million euros (2,579.5 million dollars), an increase

of 12 percent at constant exchange rates. After consideration of the negative currency impact, growth amounts to 8 percent. In the second quarter, growth remained sustained at over 10 percent at constant exchange rates, notably in the group’s stores despite a high comparison basis in 2013.

In the first half of 2014, the turnover increased in all regions of the world. Asia excluding Japan with over 17 percent growth is maintaining its dynamism in all countries, notably in China. Japan with over 11 percent is continuing to improve after an exceptional first quarter, when it benefited from early purchases linked to increased prices and higher VAT. The first half-year in America witnessed 13 percent rise and Europe with over 7 percent generated a good performance in a difficult economic context.

Growth of leather goods and saddlery was over 13 percent was supported by the ramp-up of the production capacities in the two new sites that opened in 2012, namely in Isère and Charente. Ready-to-wear and accessories reported over 16 percent benefited from the success of its latest collections, notably in fashion accessories. The silk & textiles sector saw over 11 percent rise in sales. Perfumes with over 8 percent in the first half of 2013 benefited from the launch of the new women’s perfume Jour d’Hermès, generated a good performance with the promising launches of Jour d’Hermès absolu and Terre d’Hermès eau très fraîche.

Watches reported decrease of below 7 percent, bogged down by wholesale sales in an always difficult market, notably in China. Other Hermès sectors reported over 18 percent rise, including Jewellery, Art of Living and Tableware.

Results for the first half of the year will be published on 29 August 2014. Due to the negative impact of exchange rates, operating margin should be slightly lower compared to the first half 2013’s margin and close to the historical high reached during the full year 2013 at 32.4 percent.