Hermès Q2 Sales Rise 14.7% In Show of Luxury Sector Resilience

PARIS — Offering a picture of resilience against a backdrop of international trade tensions, sales at Hermès International climbed 14.7 percent in the second quarter, beating expectations. “Hermès sales were very dynamic,” said the leather goods maker’s chief executive officer  Axel Dumas, referring to the entire first half period and flagging the performance as proof of the “craftsmanship” model’s relevance. Sales for the second quarter at Hermès, famed for its Birkin handbags and silk scarves, totaled 1.67 billion euros, fueled by a strong performance in Asia and with an extra lift from currency rates. The revenues were in line with trends of the previous quarter, the company said. Hermès noted that current operating profitability will likely be slightly below the record level of 34.5 percent that it reached in the first half of the previous year, with exchange rate hedges unfavorably impacting the period. “All in all, another rock solid quarter for Hermès,” said Rogerio Fujimori, analyst with RBC. The analyst noted margin guidance was “broadly in line” with expectations.

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