By Joshua Kirby
PARIS (Dow Jones)–Hermes was more profitable than ever in the first half of the year despite temporary lockdowns in China. According to the luxury fashion company, its recurring operating profit rose from 1.72 to 2.3 billion euros, with the corresponding margin reaching a new high of 42 percent. The bottom line was a net profit of 1.64 billion euros, sales amounted to 5.48 billion euros in the first half of the year. Also due to the lockdown in China to contain Covid 19 in April and May, sales growth fell to 20 percent in the second quarter, after 27 percent in the first three months. According to Hermes, sales in China recovered significantly in June.
The company has seen its strongest growth in the US, where momentum has continued, and in Europe, particularly in France, thanks to continued demand from local customers and a resurgence in tourism.
The company did not provide full-year targets but remained confident of achieving its “ambitious” target of mid-term sales growth in constant currencies. “For 2022, the effects of the health environment are still difficult to estimate,” Hermes said.
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(END) Dow Jones Newswires
July 29, 2022 06:11 ET (10:11 GMT)
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