REPORT Consolidated turnover at Hermes for the first semester was equal to 2, 299 million euros (2,496.7 million dollars), an increase of 21 percent at current exchange rates. Before consideration of the positive currency impact, the growth amounts to 9 percent. In the second quarter, the growth was sustained with 22 percent at current exchange rates and 10 percent at constant exchange rates.
In the first semester, the turnover increased in all regions of the world. Japan posted a 20 percent rise and generated an excellent performance over the first six months of the year, thanks to its selective distribution network. Asia excluding Japan grew 7 percent, despite the difficult context in Hong Kong and Macau. In America, with 10 percent rise, where the enlarged and renovated Seattle store reopened in June, the development potential has been confirmed. Europe reported 7 percent growth and generated a good performance in the Group’s stores.
The growth of Leather Goods and Saddlery improved 14 percent. Its development was supported by the ramp-up of the production capacities of the two new sites that opened in Charente and in Isère in June, as well as by the construction project for two new production units in Franche-Comté. The Ready-to-wear and Accessories division with 8 percent rise benefited from the success of its latest collections, notably in fashion accessories. The Silk & Textiles business line improved 5 percent. Perfumes in the first half of 2014 benefited from the launches of Jour d’Hermès absolu and Terre d’Hermès eau très fraîche, improved by 4 percent.
Watches declined slightly within a general environment of a downturn in the watchmaking industry. During the watchmaking trade fair in Basel, the business line presented its new model Slim d’Hermès, to a very warm welcome. The other Hermès business lines including Jewellery, Art of Living and Hermès Tableware, increased 12 percent.
At the end of June, the exchange rate evolutions were favourable, resulting in a positive impact on the turnover of 224 million euros (243.3 million dollars). The results for the first semester will be published on August 28, 2015. As a result of the weaker euro, the operational profitability is expected to be down slightly in comparison with the first half of 2014. Despite economic, geopolitical and monetary uncertainties around the world, the medium-term objective of increasing the turnover with constant rates is in the area of 8 percent.