Hermes says H1 profit margin to decline slightly

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Hermes forecast on Tuesday that its first-half operating margin would decline slightly year-on-year because of the weaker euro but the luxury goods company stuck to its medium-term sales growth target.

The luxury bag maker posted a 9.7 percent rise in second-quarter revenue at constant exchange rates to 1.177 billion euros ($1.27 billion). Analysts had expected quarterly sales to rise by 8.5-9 percent.

"As a result of the weaker euro, the operational profitability should be down slightly in comparison with the first half of 2014," Hermes said in a statement.

The group confirmed its medium-term objective of increasing turnover at constant rates by around 8 percent.