By
Reuters
Published
Aug 28, 2009
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Hermes first half profits miss market forecasts

By
Reuters
Published
Aug 28, 2009

PARIS, Aug 28 (Reuters) - French luxury group Hermes (HRMS.PA) on Friday 28 August posted first-half profits below market expectations, hit in part by lower revenues from its financial investments and slower growth in certain markets.

Hermès
www.Hermes.com

The French maker of classic handbags and silk scarves made an operating profit of 199.8 million euros ($284.4 million) in the six months to June 30, against 203.8 million in 2008.

The performance came below an average forecast of 211 million euros based on a Reuters poll of nine analysts. As expected, Hermes kept its full-year outlook of flat sales and a slight drop in operating margin.

The group's margin during the first half fell to 22.8 percent from 25.1 percent during the same period in 2008.

Hermes, the world's second largest luxury group in terms of market value, said it would maintain its investments during the second half, which would include the opening and refurbishing of more than 10 shops, in areas such as the United States and Asia.

Hermes's net profit, which fell seven percent to 125.4 million euros in the first half, missed a forecast of 138 million euros based on the same Reuters poll.

Hermes will be holding an call with analysts at 0700 GMT during which investors will be keen to hear about summer trading and the second-quarter performance of each division.

($1=.7024 Euro)

(Reporting by Astrid Wendlandt, Editing by Sudip Kar-Gupta)

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