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Hermès Profit Rose 17% in H1, Spurred By Asian Demand

Hermès International posted a 17 percent jump in first-half net profit, lifted by brisk global demand for high-end goods, with Asian consumers driving growth.

Net profit for the maker of Kelly and Lindy bags over the first half was 708 million euros ($823 million), with an extra boost coming from a property sale in Hong Kong.

Sales over the period rose 11.2 percent to 2.85 billion euros, with Asia clocking the fastest pace, up 12.8 percent. In the Americas, where the company opened a store in Palo Alto, Calif., in May and Cancun, Mexico, in March, rose 12.4 percent at constant rates.

Demand in Europe, where the company launched a new website at the end of March, remained firm with a 7.8 percent rise.

Hermès executive chairman Axel Dumas said in the earnings statement the results were due to “the singularity and the integrity of our economic model; a strong model in a worldwide context that remains uncertain and unstable.”

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Operating income rose 11 percent to 1.04 billion euros, including a 53-million-euro capital gain from the sale of the former Galleria store property in Hong Kong. Hermès confirmed its “ambitious goal” for revenue growth in the full year.

This story was reported by WWD and originally appeared on WWD.com.

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