Hermes sales rise to the demand for luxury in Asia

Hermes International SCA, the French manufacturer of silk scarves and leather goods, reported sales in the second quarter, beating estimates on increased demand in Asia, and reported profit growth in first half year is the improvement in the net business. Revenue rose 22 percent to € 814.5 million (A968.4 million euros), said the Paris-based company yesterday, exceeding the € 799.3 million average estimate of three analysts compiled by Bloomberg. Revenue rose 13 percent excluding currency fluctuations. Hermes, LVMH Moet Hennessy in the Louis Vuitton SA owns 22.3 percent, reaffirmed its target revenue growth of 10 percent per year, excluding currency fluctuations. Shares acquired as much as 1.9 percent. Luxury stocks in Europe fell last week after missing Burberry Group turnover that is estimated, fueling concern that the debt crisis and slowing growth in China has been under a high toll on the demand for the end. First half of the current operating income should be increased in line with the rate of 22 percent as revenue in the reporting period, Hermes said in a statement. For the full year operating profit margin is between that be achieved in 2010 and 2011. In the second quarter, sales jumped by 27 percent in Asia in exchange rates, the acceleration of the first quarter, the company said. This does not include Japan, where sales increased by 1.1 percent on the same basis. Sales rose by 6.8 percent in France and 16 percent in the rest of Europe at constant exchange rates, Hermes said. Total Sales in Europe rose 12 percent, a decline from the first quarter, up 21 percent rate. In the Americas, sales increased by 8.2 percent at constant exchange rates, the company said. Leather goods sales rose 7.4 percent, and silk and textiles by 16 percent, while the ready-to-wear and accessories rose by 22 percent.