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Hermes sales rise as head count increases

Sales at French luxury goods group Hermes rose 22% during the first half, with the company bolstering its team to deal with demand.

In the six months to June 30 sales totalled €1.6bn (£1.3bn) as operating income grew by 22.2% to reach €510.9m (£405.0m).

All regions saw solid growth during the period, with sales in Europe shooting up by 21%. Sales across Asia (excluding Japan) led the way, accounting for 25% growth, while sales in America rose 9% and Japan a more muted 3%.

The company created 445 new jobs during the first half of the year to enable to sales and production teams to be reinforced to deal with the success of the collections. By the end of June Hermes had a head count of 9,526, a 5% rise compared to the beginning of the year.

Hermes’ clothing and accessories division saw a 21% surge in sales driven by the success of its spring 12 collection and the group’s leather goods and saddlery division saw a 10% growth in sales. The silk and textiles division posted15% growth.

Due to the growth seen in the first half Hermes projects annual growth to be around 12%.

Cheuvreux analyst Thomas Mesnin called the latest report “a good and reassuring publication for Hermes”.

In a statement the luxury goods company said: “In the second half of the year, Hermès will continue its strategy based on developing its distribution network, strengthening its production capacities and securing its supplies.”

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