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Hermès celebrates an “exceptional” semester with net profit exceeding one billion euros

2021-07-30T07:09:18.858Z

The luxury saddler and leather goods manufacturer saw its net profit triple compared to the first half of 2020.



The luxury group Hermès saw its net profit reach 1.174 billion euros in the first half, three times more than in 2020, a year marked by the Covid-19 crisis and up 56% compared to 2019, before the pandemic.

Saddlery and leather goods sales amounted to 4.235 billion euros, up 70% compared to 2020, a performance exceeding analysts' expectations.

This increase reached + 29% compared to 2019. The current operating margin jumped to 41% of sales.

Read also: Luxury: LVMH breaks its historic records for 2019

The results for this first semester are exceptional. But this performance also reflects the dynamics and resilience of our model (...) We remain mobilized to face uncertainties by being faithful to our values

”, declared the manager of the Axel Dumas group quoted in the press release. In the medium term, "

despite the economic, geopolitical and monetary uncertainties in the world

", the group confirms an "

ambitious objective of increasing turnover at constant rates

" and pursues its long-term development strategy.

Sales in the second quarter are up 119% compared to 2020. All geographic areas confirm strong growth, with an acceleration in America and a recovery in Europe, according to the group. At comparable exchange rates, a benchmark for the group, America has seen sales jump by 115% over the year and 25% over two years.

Sales in Asia excluding Japan remained dynamic (+ 70% over two years) but also in Japan with an increase of 22% compared to 2019. At the end of June 2021, all businesses confirmed their growth, with a "

remarkable

"

increase in sales.

Clothing and Accessories (+ 40% over two years), Watchmaking (+ 80% over two years) and Other Hermès businesses (Jewelery and Home Products) which almost doubled their turnover over two years.

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Sales of Leather Goods and Saddlery, Hermès' core business, are up 25% compared to 2019. After the leather goods workshop in Montereau (Seine-et-Marne) inaugurated in June, the brand will further increase its production capacities with the opening of the leather goods store in Guyenne (Gironde) in September, the leather goods store in Louviers (Eure) in 2022, the new site in the Ardennes in 2023 and the second leather goods store in Auvergne for 2024.

Source: lefigaro

All business articles on 2021-07-30

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