Hermes sees net income surge in first half

French luxury brand Hermes has seen first half net income surge as the company said sales grew across all geographies and categories.

For the first-half, net income was up 49.5% to $419 million, while sales increased 22% to $1.87 billion.

Operating margin widened 3.7 percentage points to 32%, said Hermes, the “highest level recorded by the group since its IPO” in 1993. Operating income was up 37.3% to $602 million.

The company said that growth was driven by the US and China, with the Americas reporting 34% sales growth, while Asia, excluding Japan, reported 30% growth. In its French home market, sales were up 21%, which it attributed to a new store on rue de Sèvres in Paris, while the rest of Europe enjoyed 20% sales growth.

Sales increased 29% in its silks and textiles division, driven by its “lavish collections” and “persistently high corporate communication expenditure.” Ready-to-wear and accessories reported a 31% sales rise, while leather goods and saddlery saw sales increase 15%.

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