Hermes ties up higher sales
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Luxury goods maker Hermes said Wednesday that it booked further sales growth in the third quarter, driven by higher demand in all divisions and across all regions. Hermes said revenues were up by 6.4 percent at 1.337 billion euros (1.5 billion US dollars ) in the period from July to September, beating analysts' expectations.
Adjusted for exchange rate fluctuations, sales increased by 11.3 percent, the group said in a statement. "All sectors recorded growth, with a remarkable performance of the ready-to-wear and accessories, silk and textiles, and perfumes business lines," the statement said.
"We're continuing to deliver a robust performance and particularly healthy growth, because it's organic growth," said chief executive, Axel Dumas. "It's a very good quarter," he told a telephone news conference. Taking the nine months to September, sales totaled 4.05 billion euros, an increase of 9.5 percent or 10.2 percent when adjusted for exchange rate effects.
Asia remains by far the biggest market for Hermes, with total sales in the region amounting to 1.978 billion euros in the nine-month period, up 10.1 percent on the year. European sales grew by 8.3 percent to 1.295 billion euros, with sales in France up 5.4 percent at 549.9 million euros.
By division, sales of leather goods and saddlery accounted for around half of the group total, rising by 10.5 percent to 2.058 billion euros. "We're lucky in not having any stockpiles. We sell everything we produce," CEO Dumas told AFP.
Looking head, Hermes said that "in the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates."
It did not provide any precise figures or targets, and insisted that its third-quarter or nine-month performances could not be extrapolated for the whole year. (AFP)