The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — Hermès International says growth in greater China remains rapid despite months of protests in the luxury shopping hub of Hong Kong.
A “slight acceleration” in mainland China will offset the impact from store closures in Hong Kong, which was most significant in August, Hermès Chief Financial Officer Eric du Halgouet said on a conference call.
“Globally, our performance in greater China has been identical,” he said. “We remain on the same trend.” Hermès shares fell less than 1 percent in Paris trading to €634.80.
Du Halgouet spoke to reporters as Hermès reported first-half operating profit of €1.14 billion ($1.26 billion). Analysts had predicted €1.12 billion.
By Robert Williams; editors: Eric Pfanner and Marthe Fourcade.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.