Hermes says Q1 sales gain 10.3% but leather goods sag
French luxury fashion group Hermes, known for its elegant silk
foulards and exclusive handbags, on Monday said its first-quarter sales
gained 10.3 percent thanks to a surge in demand especially by Asian
shoppers, but noted weaker growth in sales of its iconic leather goods.
While overall sales came to 856.8 million euros ($1.1 billion), the
Paris-based fashion house said in a statement that it saw a 17 percent
jump in Asian countries excluding Japan, where they were 7.0 percent
stronger.
Asian fashionists and particularly Chinese, have grown increasingly
fond of the traditional French brand which is profiting from an influx
of tourists who snap up luxury goods while visiting Europe.
In Europe, Hermes said it had benefited from a 12.0 percent jump in
sales, "despite a very high basis of comparison and a dull economic
climate." In the Americas, sales gained 11.0 percent, it added.
The overall gain of 10.3 percent was significantly less than the 2012
first quarter expansion of 18.5 percent, but Hermes posted a better
figure this time around than French rival LVMH, where comparable sales
were up by 7.0 percent.
"Everywhere demand for Hermes collections remains strong, favoured by
a growing requirement for quality, personality and timelessness of
objects and clothes," the statement said.
Hermes had record results in 2012, with sales of 3.48 billion euros
and a net profit of 740 million.
In the first quarter of 2013, the Leather Goods and Saddlery division
posted organic growth of 7.0 percent from the same period a year
earlier, but that was less than half the comparable rate in the final
quarter of 2012.
Growth in sales of Silk & Textiles, the group's scarf division, was
15 percent, in large part owing to ramped up production capacity.
AFP
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