Hermes surprises with strong profits for the first half, while Ferragamo and Folli Follie also see profits up. Exor sees profits soar due to SGS sale.
Strong demand for leather and silk accessories has seen French luxury group Hermes beat forecasts for its first half operating profit, up 14% to €584 million.
The fashion group said growth was balanced in all regions, with Asia ex-Japan and the Americas both seeing growth of 17% compared to the previous year.
Ready-to-wear and fashion accessories were up 21% and perfumes were up 20%.
Given its successful first half, Hermes says it is on track to exceed its mid-term growth target of 10% for the full financial year.
Luxury Italian fashion house Salvatore Ferragamo Group has seen its revenues increase 11% year-on-year for the year’s first half, totaling €625 million.
Asia Pacific was the group’s top market for revenues, accounting for about 38%. In China, for the second quarter, revenue was up 30% compared to the previous year.
In contrast, Japan registered a 2% increase in revenues, and that changed to a 13% decrease when taken at current exchange rates, due to impact of the yen fluctuating against the euro.
Handbags and leather accessories saw the greatest increase in revenues up 15%, followed by fragrance (13%) and footwear (11%).
Folli Follie Group
Greece’s Folli Follie Group released its full year results for 2012, revealing revenues were up 8.7% to €1.1 billion.
Jewellery, watches and accessories saw revenues increase by 18% to €583.8 million.
George Koutsolioutsos, who along with his family owns around 40% of the fashion group, said the results mean the group is among the most profitable in Greece.
He said the company’s most important event for 2012 was when it joined forces with Dufry Group on its retail travel retail business, which represented the biggest direct investment in Greece since the start of the crisis.
Italy-based holding company Exor, which controls carmaker Fiat and is owned by the Elkann family, has seen its first half net profits soar tenfold due to the sale of its stake in Swiss company SGS.
Net profit was €1.67 billion, compared to €168.3 million for the first half of 2012.
The group says it will use the proceeds to take advantage of new investment opportunities.