Hermes first-half 2015 profit increased by 20%

French luxury maison Hermes International reported a 20 percent increase in first-half earnings as sales growth accelerated in Japan.

Earnings before interest and tax rose to 748 million euros ($842 million) Hermes said in a statement. Analysts predicted 737 million euros, according to the median of 13 estimates compiled by Bloomberg. Sales increased 21% to 2.3 billion euros.

Hermes said last month that the operating margin would fall slightly because of the weaker euro. The measure of earnings as a proportion of sales narrowed to 32.5 percent from 32.6 percent, Hermes said Friday.

Hermes reiterated its medium-term target of 8 percent revenue growth at constant exchange rates and said the profit margin will narrow this year because of currency fluctuations.

Chinese consumers have been traveling to Japan and Europe to shop for luxury goods after a clampdown on lavish spending back home and protests in Hong Kong. Chinese policy makers this month devalued the yuan the most in two decades amid signs of decelerating growth in the world’s second-largest economy.

Hermes Maison store, Beijing