Hermes says luxury sales still rising

A model presents a creation for Hermes during the Fall/Winter 2013-2014 ready-to-wear collection show. Picture: Getty

A model presents a creation for Hermes during the Fall/Winter 2013-2014 ready-to-wear collection show. Picture: Getty

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FRENCH fashion house Hermes delivered an upbeat messgae to the luxury goods market yesterday as it posted a 16 per cent rise in quarterly sales.

Revenues reached €910.4 million (£783m) in the second quarter of 2013, confounding fears that the slowdown in China would hurt a key market for European luxury.

Trading remained strong in North America and Asia, while Japan “confirmed the turnaround observed in the first quarter”, the firm said.

The group, famed for its leather handbags, said full-year revenue could now slightly exceed its mid-term growth target of 10 per cent while operating margins were close to last year’s record highs.

Sales are still constrained by production capacity but Hermes has expanded two factories in the Isere and Charente-Maritime regions and plans to open two more.

Paris-listed Hermes, which started as a saddle and harness maker in 1837, is Europe’s third-largest luxury goods group by market value.

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