Luxury goods group Hermes posts higher Q2 sales

[PARIS] Luxury handbag maker Hermes International reported that sales in the second quarter had grown faster than in the previous three-months, lifted by strong demand in China.

The maker of Birkin handbags, which are worth more than a small car, said sales revenue rose 7.2 per cent to 1.46 billion euros (S$2.3 billion) for the three months through June.

Sales rose 12 per cent at constant exchange rates, up from 11 per cent during the previous quarter. Analysts expected a 10 per cent increase.

Sales in China kept on growing at a double-digit rate as in the past years, chief executive Axel Dumas told reporters.

The company said it expects operating profitability in the first half of this year to be close to the record level reached in the first half of 2017.

REUTERS