PARIS (AFP) – French luxury group Hermes reported yesterday a big jump in profits for the first half of the year, with “exceptional” sales growth in Asia as China emerged from years of COVID-19 pandemic restrictions.
The maker of leather goods, silk scarves and jewellery said net profit reached EUR2.2 billion (USD2.4 billion) between January and June, up 36 per cent from the same period last year.
Its sales rose 22 per cent to EUR6.7 billion.
Hermes reported “strong momentum” across all business lines and all regions, but growth was “exceptional” in Asia.
Sales in Asia, excluding Japan, grew 23.7 per cent to EUR3.3 billion, Hermes said, citing a “successful” Lunar New Year. The company cited “strong momentum in Greater China and throughout the region, particularly in Singapore, Thailand, Australia and Korea”.
It noted that second-quarter figures benefitted from a “favourable comparison basis” from last year as China enforced strict COVID-19 pandemic restrictions that have since been removed.
Hermes performed better than rivals LVMH and Richemont in the United States with sales in the Americas region growing 20.7 per cent to EUR1.2 billion in the world’s biggest economy.
The luxury house opened new stores in Aspen, Colorado, and the city of Naples in Florida this year.
