Sales of Hermes rose by 6% in the first half of 2016

Sales of Hermes rose by 6% in the first half of 2016-

Sales of French luxury goods maker Hermes rose by 6% in the first half of 2016 to 2.4 billion euros, reported MarketWatch.

Growth is smaller than last year when the company reported a jump in revenue to more than 20% compared to the previous year.

Revenues only in the second quarter increased by 6.2% to 1.25 billion Euro. Analysts had forecast they will amount to 1.23 bln. Euro.

The family company explained that was affected by negative currency effects in the first half of the year. Excluding these effects, sales increased by 7% in the period to June this year.

The manufacturer of bags “Birkin” and “Kelly” reiterated that it expects revenue to grow by less than 8% at constant exchange rates this year. This is due to the weakening global economy and geopolitical tensions that limit the consumer demand for expensive handbags and other fashion goods.

The company sent 2015 with a profit growth of 13%, managing to maintain the lead in the industry margins, though revenue growth has slightly slowed in the fourth quarter. Profit rose to €973 million from €859 million in 2014 with 8.1% growth in revenues to 4.84 billion euros.

 

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