Hermes beats estimates with 24.2 percent growth in the third quarter
Hermes sales in Q3 rose to EUR 848.6 million ($1.08 billion) from EUR 683.2 million a year earlier, beating a survey of analysts forecast for EUR813.5 million. Stripping out exchange rate fluctuations, sales jumped 15.7%, as business boomed notably in Asia and France.
Growth accelerated after slowing in the second quarter when an increasingly challenging economic climate in Europe and political change in China– a key luxury market– led high-end consumers to be slightly more cautious about splurging on clothes and accessories. In the second quarter, revenue rose 13% from a year earlier, down from the 18% growth registered in the first.
Hermes said that annual sales growth could exceed 13% this year. At the end of August, Hermes had already raised its target for annual growth at constant exchange rates to around 12% from 10% previously forecast.