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Hermès rebounds to pre-corona sales and profit levels

By AFP

30 Jul 2021

Business

Image: Hermès SS22

French luxury group said Friday that its sales and profit had bounded past pre-pandemic levels in the second quarter.

While the firm known for its leather handbags and silk scarves acknowledged the exceptional nature of its performance due to the fact its stores were closed in many countries during the second quarter of last year, it also said it had momentum to grow further.

First-half profit more than tripled from last year to nearly 1.2 billion euros (1.4 billion dollars). It was also an increase of 56 percent from the first half of 2019, before the pandemic began.

Strong revenue growth at Hermès

Sales came in at 4.2 billion euros, a jump of 70 percent from the same period last year and 29 percent from 2019.

"The results for the first half of the year have been exceptional in nature," chief executive Axel Dumas said in a statement. "But this performance also reflects the momentum and resilience of our model," he added.

The firm said the impacts of the Covid-19 pandemic on its operations this year are difficult to assess.

"In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates," it said.

Hermès shares rose 0.8 percent just after trading began in Paris, where the blue-chip CAC 40 index shed 0.4 percent.(AFP)