Hermès second-quarter revenue rose 6.7% on a constant-currency basis to 4.1 billion euros, broadly in line with consensus estimates. Sales in France grew 6%, swinging back to positive territory after a decline in the first quarter, and CEO Axel Dumas noted improving momentum at Paris stores. Revenue in the Asia-Pacific region excluding Japan increased 2.5%, flat from the first quarter, with the China market stabilizing but not yet seeing a full recovery. The operating margin came in at 41%, beating expectations, and sales in the leather goods division, which includes Birkin bags, rose 10%.
Hermes International SCARevenue growth and improving sales in France and leather goods division indicate strong end-customer demand.