Hermès Sales Jump 24.2% in Q3

Hermès International upped its target for sales growth in 2012 after reporting that sales grew 24.2 percent in the third quarter, with all regions posting double-digit growth.

The maker of Birkin bags and silk scarves reported sales of 848.6 million euros, or $1.06 billion, in the three month to Sept. 30, compared with 683.2 million euros, or $967.2 million, during the same period a year earlier. This represented an increase of 15.7 percent at constant exchange rates.

As a result, the company said its target for consolidated annual sales growth at constant exchange rates could exceed 13 percent, versus 12 percent previously. It still expects the current operating margin to fall between the 2010 level and the record high of 31.2 percent hit in 2011.

Sales in Asia Pacific remained a key driver of growth, rising 36.1 percent during the period. The Americas posted a 27 percent increase, while France recorded a jump of 18.8 percent. Sales in the rest of Europe were up 14.9 percent, Hermès said.

Sales of leather goods and saddlery, which are limited by the company’s production capacity, rose 18.4 percent during the quarter, while turnover in ready-to-wear and accessories was up 29.1 percent. Silk and textiles saw a 21.7 percent increase, and perfumes gained 14.1 percent. Sales of watches rose 24.7 percent during the period.

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