Hermes Sales Data Released In The First Half, Leather Goods Sales Increased By 20%

French luxury goods manufacturer Hermes group released 19 data show that due to regional sales performance is good, especially in Asia.

Sales growth was strong, and the group's sales increased 21.9% in the first half of this year.

Data show that Hermes has achieved sales of 1 billion 590 million euros (US $1 billion 950 million) from 1 to June this year, an increase of 21.9% over the current exchange rate, an increase of 15.4% over fixed exchange rates.

Hermes said that the target of a 10% increase in annual sales and fixed exchange rate is expected to come true.

In the first half of this year, sales of Hermes's sales department increased significantly, and watches, fashion, leather goods and perfume increased by 23%, 21%, 10% and 13%, respectively, at fixed exchange rates.

The sales of Hermes in Asia (excluding Japan), the Americas and Europe (excluding France) increased by 25%, 9% and 21% respectively.

Patrick Thomas, chief executive of Hermes, told French media that the group's sales in the US and China remained strong for the first half of the year. However, due to the slowdown in global economic growth, the group's growth in the second half of the year is hard to maintain.

Exchange rate factors, rising raw materials and French tax policy adjustments will have a negative impact on group performance.

Hermes said that due to uncertain economic prospects and fluctuations in exchange rates, it was difficult for the group to make accurate forecasts for this year's performance. The operating profit margin is expected to exceed 27.8% in 2010, but it is difficult to achieve a record of 31.2% last year.

In the second half of this year, the group will continue to implement the established strategy, expand sales network, strengthen production capacity and ensure procurement safety.

Hermes was founded in 1837. It was originally a family business mainly made of harness, and later developed into a luxury goods manufacturer, famous for its leather goods and fashion.