Hermes lifts its sales forecast
DESIGNER label Hermès yesterday lifted its full-year sales growth target on the back of a stronger than expected second quarter, confirming the French group was enjoying one of the strongest rebounds of the luxury sector.
The maker of printed silks and €10,000 (£8,500) leather handbags now foresees a 10-12 per cent rise in full-year sales at constant exchange rates against previous expectations of a increase of at least five per cent given back in May.
Sales for the second quarter to 30 June were up 27 per cent to €567m (£479m). There was a surge in Asian sales of 45 per cent and the designer label also saw success in Europe and the Americas.
The brand performed well across its range of luxury products. Perfumes registered a surge of 25 per cent, boosted by the successful launch of Voyage d’Hermès in March, and leather goods saw a 23 per cent increase. After a difficult year in 2009, sales of watches were up by 33 per cent. In the second half of 2010 Hermès plans to open and renovate 20 branches.
Although the figures were flattered by easy comparisons, the company performed strongly through the recession. Sales of silk scarves and designer handbags – which cost up to £8,000 each – helped to fuel the positive figures.
Rival Burberry also reported an upturn last week as a shake-up of the company’s strategy started to reap rewards.