Hermès reports sales growth of 21.9% in Q2

Hermès International announced its financial status for the

second quarter of fiscal 2012. The group reported a growth of 21.9 per cent in sales. The group's consolidated revenue in the first half of 2012 totalled €1,591.4 million ($1.95 billion/Rs 10,732 crores), a rise of 21.9 per cent at current exchange rates and of 15.4 per cent at constant exchange rates.

In the first half of 2012, its all business sectors registered increases. In Leatherwork & Saddlery, which continues to invest in expanding production capacity, sales continued to rise (up 10 per cent). Ready-to-wear & Fashion Accessories (up 21 per cent) registered strong growth owing to the success of the spring-summer ready-to-wear collections and to fashion accessories. Silk & Textiles delivered growth of 15 per cent, driven by the sector's lavish collections. Perfumes (up 13 per cent) remained on an uptrend due to the success of Terre d’Hermès and to the introduction of Voyage d’Hermès perfume during the first quarter. The Watch sector reaped the fruit of its ongoing investments in know-how, and jumped by 23 per cent.

As of end of June, currency fluctuations were favourable and had produced a positive impact of € 85 million ($104.37 million/Rs 574 crores) on revenue. During the first half, Hermès International continued to buy back shares for its employee share ownership schemes. The company bought back 89 582 shares for €21 million ($25.79 million/ Rs 141 crores). At 30 June, it held 1 457 682 shares worth a total of €310 million ($380.65 million/Rs 2,095 crores), excluding shares covered by a liquidity contract.

Given the sales performance in the first half, the group stands by its target for consolidated revenue growth of 10 per cent over the full year at constant exchange rates. The underlying operating margin is expected to be between 2010 and the all-time high achieved in 2011.

The Hermès Group, founded in 1837, designs, develops and markets high-quality products in more than fourteen departments and distributed over 11 main divisions, including bags, leather goods, Jewellery, silk scarves and ties.