Herm E S Hermes Sales Increased 11% In The Three Quarter. China Is In Crisis.

Herm s International SCA (HRMS.PA) Hermes international recently announced its three quarter results exceeding market expectations.

Thanks to strong demand from the US and Japan for their leather products, the Chinese market was weakened, and the three quarter rebounded in the two quarter.

As of the three quarter of September 30th, the group achieved a total revenue of 990 million 600 thousand euros, slightly higher than the 983 million 500 thousand euro market forecast, an increase of 10.6% over the previous year, significantly recovering from 5.8% in the two quarter and 7.9% in the first half.

At a fixed exchange rate, the growth rate was 11.1%, the market expected to increase by 10%, and the two quarter growth rate was 9.6%.

At a fixed exchange rate

The Asia Pacific region's Asian income growth slowed sharply in the context of Hongkong's political instability and the slowdown in China's luxury goods market. It recorded an increase of 10.2% and an increase of 16.8% in the two quarter.

The market in Japan and the Americas significantly recovered, with revenues rising by 16.4% and 16.9% respectively, better than analysts expected, with only 1.6% and 7.9% in the two quarter.

European income rose by 6.8%.

The watch category continued to deteriorate in the Asia Pacific region, especially in the Chinese market, and the revenue declines expanded from 12% in the two quarter to 14.4%.

Group most

The leather and horse equipment department has made remarkable progress. With the increase of production capacity, the revenue increased by 19.3% to 454 million euros compared with the previous year, and the increase in the two quarter was only 10%.

The income of garments and fashion accessories increased by 9.1%, and silk and textiles increased by 3.6%. These two businesses all retrogressed in the two quarter.

Sales of perfume increased by 11.8%, while other businesses including jewellery and tableware increased by 8.5%.

The group maintained a medium-term target of 10% growth in revenue under the fixed exchange rate, and reiterated that the annual operating profit margin would decline from a record 32.4% last year.

In the three quarter, the world's largest luxury group LVMH Mo t Hennessy Louis Vuitton SA (LVMH.PA) MOET & CHANDON Hennessy LV group and Herm Herm s International (L) Hermes international settled four years of equity disputes.

Reconciliation

LVMH, Mo, t Hennessy Louis Vuitton SA (LVMH.PA) will issue the Herm s s International (Hennessy) shares to the shareholders of the group on 17 December.

LVMH Mo t Hennessy Louis Vuitton SA (LVMH.PA) and group chairman and chief executive officer Bernard Arnault family holding company, Groupe Groupe and T, agree that they will no longer acquire shares in the next 5 years.

After the end of this round of share allocation, Groupe Arnault SAS will continue to hold 8.5% Herm s International SCA (HRMS.PA) shares.

However, the legal disputes between LVMH Mo t Hennessy Louis Vuitton SA (LVMH.PA) and Herm s International International (x) will also end.

Herm s International SCA (HRMS.PA) began to descend slightly after opening on Thursday, and fell 0.63% to 246.30 euros to the deadline.

The stock has fallen by more than 6% since 2014.