Hermès reports sales growth driven by handbags but says Middle East uncertainty is weighing on fashion

Deep News10-22

French luxury group Hermès International SA (OTC: HESAY) reported a decline in sales in its ready-to-wear and accessories category, blaming a challenging economic environment in core markets including the Middle East.

The Paris-based company said total sales rose 4.3% year over year at constant exchange rates to €4.1 billion in the three months to the end of September, slightly below analysts' expectations of 5.2% growth.

Its core handbags and leather goods division, which is highly sought after, remained resilient with revenue up 10.8% year over year in the quarter. However, revenue in its second-largest division, fashion and accessories, fell 2% over the same period.

Executive Chairman Axel Dumas said in a statement: "In a complex environment, Hermès has once again delivered profitable growth and maintained a steady pace of development."

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