Hermes International SA Reports 7% Revenue Growth in Q2, Middle East Sales Decline Amid Geopolitical Tensions

Deep News07-29

French luxury conglomerate Hermes International SA posted second-quarter sales of €4.1 billion, a 7% increase at constant exchange rates compared to the same period last year, meeting market expectations. The performance was supported by robust demand for high-end handbags and silk scarves.

Examining regional performance, all markets recorded growth in the three months ending June 30, except for the Middle East. Sales in the Middle East fell by 2.4% during the quarter, impacted by conflicts between the United States and Iran. This decline, however, narrowed from the 5.9% drop seen in the first quarter.

Both Japan and the Americas achieved double-digit growth. The company's largest division, leather goods, saw sales increase by 10.2%. Notably, revenue from Hermes International SA branded perfumes and beauty products decreased by 9.5% in the second quarter, raising concerns about its appeal among middle-income consumers. The group's executive chairman stated that the first-half results were steady and expressed confidence in the outlook for the second half of the year.

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