PARIS (Reuters) -Birkin-bag maker Hermes reported a 13% rise in second-quarter gross sales on Thursday, demonstrating the continued urge for food from rich buyers for its luxurious purses, whilst much less prosperous customers pull again.
Gross sales on the French luxurious group grew to three.7 billion euros ($4.02 billion), a 13% natural gross sales rise that strips out foreign money fluctuations. The determine was consistent with analyst expectations, in line with a Seen Alpha consensus.
Working revenue for the primary half was 3.1 billion euros, in comparison with a forecast from consensus supplier Seen Alpha for 3.2 billion.
One of the crucial regular performers within the luxurious items sector — whilst financial situations worsen — the French group’s outcomes stand out after a string of disappointing earnings updates from friends which have raised investor concern about unsure prospects for the sector within the coming months.
Hermes’ famously traditional designs and tight administration of manufacturing and inventory have helped reinforce the label’s aura of exclusivity, and CEO Axel Dumas advised reporters the corporate had seen “no massive interruption in traits”.
Nonetheless, he mentioned Hermes was seeing barely much less visitors with aspirational shoppers, which was impacting larger quantity merchandise like vogue equipment.
($1 = 0.9209 euros)