Hermes sales grow by 22 percent in the first quarter 2012
Sales of the luxury house Hermes rose 21.9% in the first half of 2012 to 1.59 billion euros, thanks to strong sales in all its activities and all geographies, led by China, the company announced Thursday in a statement. Traditionally very conservative, Hermes maintains its annual target for sales growth to 10% after a record year 2011 and up 18.3%.
Sales of Hermes showed “no signs of slowing in China or the United States,” CEO Patrick Thomas told AFP, adding that he “does not expect”, however, a second half ” exciting “given the global economic situation. Patrick Thomas urged for a cautious approach given slightly unfavorable currency hedges, higher material prices, the shares allocated to staff and the impact of the supplementary budget for 2012 that will cost us very dearly, referring to the rising social package or the tax on dividends.
Last year, the operating margin reached 31.2% of sales.In the second quarter, sales of Hermes did less well at first but “not due to lower demand” insisted Mr. Thomas.”All our businesses are growing rapidly,” the first half, he noted, explaining that the sector that is growing the slowest, leather goods (10%), is where “manufacturing capabilities are less extensible” . Clothing and watches over 20% each, jewelery and tableware surging 50%.By geographical area, he called the request “very strong” as in Asia or Europe, where Chinese customers also feeds the turnover.