Luxury group Hermes posts solid first-half gains

Posted at 08/31/12 6:35 PM

PARIS - The French luxury group Hermes said Friday its first-half net profit rose 15.2 percent on the same period in 2011 to reach 335.1 million euros ($420.1 million).

Its operating profit increased 22.2 percent to hit 510 million euros, or 32.1 percent of sales, stable from last year's figures.

Traditionally cautious in giving growth estimates, Hermes said growth for 2012 "could be around 12 percent", having previously quoted forecasts of 10 percent. It said it would keep developing production and enhance its distribution network in the second half of 2012.

Last month the group, which sells leather goods, textiles, jewellery and perfume silk scarves, gloves, hats, shoes and jewellery, reported first-half sales up 21.9 percent to 1.59 billion euros.

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