It’s been a positive week for luxury brand Hermes, as net income increased 55 percent for their first half, with net income rising to $246 million.
Earlier this week HSBC rose their global growth forecast for the sector to 11 percent from 10 percent. Analyst Antoine Belge commented on the roaring nature of Asia in the luxury sector, “luxury companies are still spending cautiously, the China theme is positive for margins and the euro weakness is a poster.” The strongest growth for Hermes currently is in Asia and the US (with the US up 26% at the end of June.)
For Hermes the sky is the limit as shares have risen in the company roughly 52 percent, with sales estimated to increase by as much as 12% this year. With the rapid improved demand coming from the luxury Chinese shopper, Hermes look set to soar even further.
Image credit: hermes.com
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