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Hermès Sales Gain Adds Evidence of Luxury Recovery in China

Hermes reported sales growth at its main business lines, adding to evidence that the luxury industry is recovering as shoppers in China and Japan come back.
Hermès store, Hong Kong | Source: Shutterstock
By
  • Bloomberg

PARIS, France — Hermès International SCA, the French maker of silk scarves and ultra-expensive leather bags, reported sales growth at its main business lines, adding to evidence that the luxury industry is recovering as shoppers in China and Japan come back.

Revenue climbed to €1.5 billion ($1.6 billion), the Paris-based company said Wednesday in a statement. That is in line with analyst expectations. Excluding currency swings, sales rose 6.6 percent, compared with the 6.5 percent estimate.

Hermès said leather-goods sales increased 8.5 percent, while sales of its silk scarves recovered in the Christmas season with 11 percent revenue growth. The results add to recent signals that appetite for luxury goods is rebounding, especially in China, where demand had ebbed in recent years. Peers LVMH, Richemont and Burberry have all commented on improving conditions in the region.

Hermès said its operating margin improved slightly in 2016, as it had forecast. It was 31.8 percent in 2015. The company reports full-year earnings on March 22.

By Corinne Gretler; editors: Matthew Boyle and Thomas Mulier.

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