French handbag maker Hermès posted another forecast-beating set of figures today as the desire for £6000 bags and silk scarves failed to wane.
The maker of Birkin and Kelly handbags reported a 14% rise in first-half operating profit to €584.1 million (£500 million).
The group said the strong first half could mean its 2013 full-year profit, as a percentage of sales, will beat last year’s record 32.1%.
Hermès, which has been boosted by strong sales in Asia, has outperformed other luxury rivals mainly because its handbags are rationed via a waiting list. The group said: “Demand for Hermès products remains strong”, and bag sales growth was constrained by manufacturing capacity.
It is in the process of opening two new factories in France to increase production. The Paris-based über-luxury group, which makes bags that sell for up to £30,000, has been expanding into clothing which has also been performing well.
Sales for the six months to July came in at €1.77 billion and net profit was €381.7 million while its operating margin was 33.1%.
