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 SCA's second-quarter sales beat analysts' estimates on additional factory capacity and the French maker of $10,000 bags said first-half profitability improved due to a currency hedging contract.
Sales rose 8.1 percent excluding currency shifts, Hermès said in a statement Thursday. Analysts expected 5.6 percent growth. The first-half operating margin widened about 1 percentage point, helped by hedging on foreign exchange rates, the company said.
Hermès is steadily increasing production of its signature leather goods, which have waiting lists that can run for more than a year. That’s helping the maker of Birkin handbags weather slowing luxury demand. China’s cooling economy and terror attacks in Europe have some analysts bracing for the industry’s second-weakest year since 2009.
Hermès has warned that 2016 will be difficult. If demand remains subdued in parts of Asia and the US, revenue growth could be below 8 percent this year, excluding currency swings, the company repeated. First-half growth was 7.2 percent on that basis.
ADVERTISEMENT
Second-quarter revenue rose 6 percent to 1.25 billion euros ($1.4 billion). Analysts predicted 1.23 billion euros.
By Andrew Roberts; Editors: Matthew Boyle, Paul Jarvis & Thomas Mulier.
After a decade of turnaround attempts, the British trenchcoat maker’s efforts to thrive as a top luxury player continue to falter. The brand needs more accessible prices and marketing — and quick.
The designer joins BoF founder and editor-in-chief Imran Amed to discuss the ups and downs of his career in fashion and why his new label Donde Esteban is the most authentic manifestation of his creativity.
The management shakeup was announced as the Cartier owner reported mixed sales results including an unexpected turnaround in the US.
CEO Daniel Lalonde hopes to stand out from competitors in the luxury design segment by spotlighting the group’s most recognisable brands.