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Demand for leather goods boosts Hermes sales
2014/11/11 8:50:04 Source: reuters Author:James Regan and Pravin Char 点击率:

* Hermes lfl Q3 sales 11 pct vs 9.7 pct in Q2

* Pick-up in leather goods partly due to production ramp-up

* Operating margin target unchanged at just under 32.4 pct (Adds details)

PARIS- French luxury goods company Hermes posted a slightly higher-than-expected 11 percent rise in like-for-like third-quarter sales, driven by robust demand for its leather goods and ready-to-wear apparel.

The pick-up in sales at the company, famous for its 8,000-euro ($10,000) Kelly and Birkin bags, beat analysts' expectations of 10 percent growth for the quarter, year-on-year, and followed a rise of 9.7 percent in the previous three months.

Revenue from leather goods, its biggest business, saw a comparable sales rise of 19.3 percent while ready-to-wear revenue was up 9.1 percent.

Hermes Chief Executive Axel Dumas said the pick-up was partly due to a ramp-up in production and the launch of new leather bag collections such as the Halzan and Convoyeur.

The company confirmed its forecast that operating margin for the year could be slightly less than its 2013 record of 32.4 percent due to foreign exchange fluctuations.

Hermes shares, which have lost 6 percent so far this year, were broadly flat in morning trade, at 247 euros.

The trading update comes after arch-rival LVMH said on Monday it would redistribute the Hermes shares it owns to LVMH shareholders on Dec. 17 as part of a dispute-ending agreement between the two luxury groups in September.

Under the deal, LVMH - the world's No.1 luxury group, controlled by France's wealthiest man, Bernard Arnault - agreed to relinquish most of its 23.2 percent stake in Hermes and not acquire any shares in its smaller rival for five years.

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