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Reuters
Published
Apr 29, 2014
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Japan helps Hermes Q1 sales beat forecast

By
Reuters
Published
Apr 29, 2014

PARIS, France - French luxury goods maker Hermes posted a forecast-beating 14.7 percent rise in like-for-like first-quarter sales on Tuesday, driven by strong demand for its fashion and leather goods. The Paris-based company known for its iconic Kelly and Birkin handbags said sales in Japan, one of its biggest markets, were boosted by purchases ahead of anticipated price increases and a value added tax hike on April 1.


Revenue in Japan rose 22 percent in the first quarter, while trading remained buoyant in the United States and China. Hermes' first-quarter revenue of 943.5 million euros ($1.31 billion) was hit by a negative foreign exchange impact of 40 million euros, the company said in a statement.

"A very impressive start to the year," broker UBS said in a note, adding that the company's first-quarter revenue figure overshot its 902 million euro forecast. Leather goods products, Hermes' main revenue and profit contributor, generated sales growth of 15.5 percent on a like-for-like basis, while ready-to-wear and fashion accessories sales rose 19.1 percent.

The company did not provide a financial forecast for the year. However, it said it would continue to expand its distribution network, strengthen its production capacity and secure supplies. ($1 = 0.7223 Euros)

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