U.S. News

Hermes First-Half Sales Growth Capped


Hermes International said sales for the first half were 721 million euros, up 2.9% from 700.5 million a year earlier, as a negative currency impact weighed on growth.

Stripping out the effect of currency fluctuations, growth for the first half was 10.0%, which the group attributed to an acceleration of sales in the second quarter.

Given the unfavorable currency effect, Hermes said it expects operating and net profit for the full year to be "close" to the levels seen in 2006.

On a like-for-like basis, excluding changes in scope and exchange rates, Hermes said full year sales growth will be 8-8.5%, due to a slowdown in Japan.