Hermes goals set ups of the year after sales growth

  Luxury scarves, bags and watches manufacturer Hermes raised its full-year targets after beating quarterly forecasts on Thursday, with strong demand in most areas, even in the face of a slowing Chinese economy.

The worldwide demand for luxury goods has been uneven this year, hit by a decline in the number of tourists from outside Europe shopping and tone lower in China, the growth engine of the industry, where the government has decided to discourage excess among officials.

Hermes, like other high-end watchmaking, the watch market in China said suffer the crackdown on the tradition of giving party officials and entrepreneurs to facilitate transactions.

But watches are less than 5 percent of the company, and overall sales in Greater China, including mainland China, Hong Kong, Taiwan and Macau rose 21 percent rate in constant currency in the first half, head Dumas, said CEO Axel.

"We see growth in all business areas," new CEO Axel Dumas Hermes told the news agency Reuters in an interview, saying only that revenue growth was slower in watches.

The manufacturer of printed silk scarves € 500 and € 12,000 Birkin leather bags said he was grown to a record high of 32.1 percent last year, falling to its forecast operating margin after predicting a.

Pressed whether the margin to reach 32.1 percent, Dumas said: "We are pleased with him." He refused to extrapolate.

The sales growth for the full year is expected to be slightly over the medium-term growth target of 10 percent, the company and the current operating income divided increased slightly faster than incomes.

Overall, Hermes grew to 16 percent of sales in the second quarter at constant exchange rates, more than analysts' consensus forecast of 13.5 percent and an increase of 12.8 percent in the first quarter.

Refresh trade lifted shares 2.6 percent to € 257.7 by 1001 GMT, the evaluation of the French manufacturer of luxury € 26.6 billion.

RICH

Another sign of the demand among the wealthy of the world said that the false governments came back on welfare and other expenses from spirits group Remy Cointreau.

He predicts that the demand for its flagship brand of cognac in China remain sluggish in the second quarter and first quarter sales were to curb conspicuous consumption by the readers of the government concerned.

Paris-listed Hermes, which began as a saddle and harness in 1837, is the third largest group in the European luxury market capitalization behind Richemont and Louis Vuitton, which makes next week.

Despite the difficult economic environment, Dumas said the demand in Europe remained strong, with sales in the second quarter increased by 15.3 percent at constant exchange rates, while the activity was also strong in Japan, where there was a rebound in recent months.

Nick Hayek, CEO of Swatch Group, the world's largest watchmaker, said he expects business to improve in the second half and Hermes reported a 3 percent growth in sales of watches compared to one percent decline in the first quarter of 5.3.

But analysts say that the level of inventories in China - the driving force of the industry - were still high numbers published by the Switzerland, the watch exports to Hong Kong show by 15 percent and by 3.1 percent overall.

Dumas said Hermes had not increased prices in Japan, even if the yen depreciated against the euro, unlike Louis Vuitton, prices increased significantly since January.

Hermes Birkin and Kelly bags for its leather that can take years to obtain depending on the color and style known, said leather goods sales growth of production capacity was limited, but the group hopes to add the two new sites next year.