Hermes International, the French luxury fashion company, has announced a significant increase in earnings for the first half of the year. This growth can be attributed to the rebound of wholesale and in-store sales in Asia.
Impressive Financial Performance
Hermes reported a profit of 2.23 billion euros ($2.45 billion) in the first six months of the year, compared to 1.64 billion euros in the same period last year. Sales also showed an impressive 25% growth at constant currency rates, totaling 6.70 billion euros. The company's closely-watched recurring operating income also saw substantial growth, increasing by 28% to reach 2.95 billion euros.
Sales Boost from In-Store and Wholesale Activities
One of the driving factors behind the increased revenue was the strong performance of both in-store and wholesale activities, with travel retail making a notable recovery. The Asia market, in particular, experienced significant growth, benefitting from Chinese New Year celebrations and positive momentum in countries such as Singapore, Thailand, Australia, and Korea.
Continuous Growth Outlook
Hermes remains confident in its medium-term revenue growth goal at constant exchange rates. The company's solid financial performance in the first half of the year sets a promising foundation for continued success.