Hermes lifted its full-year sales growth target on the back of a stronger than expected second quarter, confirming the French group was enjoying one of the strongest rebounds of the luxury sector.
The maker of printed silks and €10,000 leather handbags now foresees a 10-12 per cent rise in full-year sales at constant exchange rates against previous expectations of a increase of at least 5 per cent given back in May.
Hermes also said it expected an improvement of at least 100 basis points for its operating margin for this year, up from previous expectations a "slight increase".
"Owing to an excellent second quarter beyond expectations, sales growth target for the year ranges between 10 per cent to 12 per cent at constant exchange rates," Hermes said in a statement.
"This target does not take into account economic factors that could significantly alter the business environment."
The French luxury group generated revenue of €567 million in the three months to June 30th, up 19.8 per cent at constant exchange rates and 27 per cent on a published basis.
As always, leather goods remained the main driver of growth during the period with sales up 23.2 per cent at constant currencies and 31.5 per cent on a published basis.
Reuters