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Hermès raises targets as Birkin bags help buck downturn Friday, 31st August 2012
Photo credit: Hermès International
Named after actress Jane Birkin and a firm favourite with the fashion set since its creation in 1982, it seems the enduring allure of the Birkin bag has helped Hermès withstand the growing pressures within the eurozone, as the Paris-based group reported a rise in first-half profits.
The luxury accessories brand said net profits grew from EUR 291 million last year to EUR 335 million for the first six months of 2012, according to a report by the Financial Times. Excluding one-off gains, this represented a rise of 28 per cent.
On the back of such a strong performance, Hermès now expects sales growth at constant rates of 12 per cent this year, up from its previous forecast of 10 per cent.
The company has also raised expectations for operating profit margins, stating it would fall between 27.8 per cent and the record 31.2 per cent achieved in 2011.
Despite its strong French heritage and appeal in Europe, Asia (excluding Japan) continued to generate the highest demand for Hermès, with sales up 25 per cent.