Hermes Has Increased Its Net Profit By 8.1% In The First Half Of The Year, Saying There Is Still Great Demand For Luxury.

Recently,

Herm (s International) announced at a press conference that the group's net profit in the first half of the year was 8.1% higher than its net profit of 412 million euros, or about 565 million US dollars.

Axel Dumas, chief executive, said he is optimistic about the Chinese market and believes that China's foundation is still solid and effective.

"In the long run, the Chinese market still has a strong demand for luxury goods."

According to him, next month's 12, Hermes opens a flagship store up to four floors in Shanghai, China.

At the same time, the group also plans to set up brand boutiques in Beijing (Beijing store) and Chengdu.

But in view of the weakness of the rouble and the turmoil in the regional political situation, Dumas expressed concern about the Russian market.

However,

The warning warned that the adverse exchange rate turbulence would dampen operating profit margins and keep them above 2013 (2013 stores).

Affected by the negative exchange rate, Hermes's sales in the second quarter only recorded a 5.8% growth, far below the 10.1% in the first quarter, with a loss of 73 million euros, or about 100 million dollars.

Insiders

Hermes should not be blindly optimistic about the Chinese market.

Since 2013, the overall environment of luxury goods has been poor, and the performance of luxury goods companies has continued to grow rapidly.

This is mainly due to the fact that the global economic recovery in 2013 was not as good as expected, and the important position of global luxury goods. China strictly controlled the "three public consumption", and the growth of luxury goods was affected. This effect lasted to the first quarter of 2014. In the first half of 2014, the luxury stores of LV, Gucci and other luxury brands also developed across the border.