Hermes Quarterly Sales Rise 19% have Japan Leads Growth

Hermes iPhone 6 case Unusual SCA reported a 19 p'cent increase in first-quarter sales, as the Birkin bag maker's Japanese business confirmed unexpected growth.

Revenue rose to at least one. 12 billion euros ($1. couple billion), Paris-based Hermes iPhone 6 wallet case said place statement Wednesday, matching the typical of analysts' estimates compiled by Bloomberg.

A 15 percent gain in the Japan boosted sales compared with great year-earlier quarter when the French manufacturer} raised prices and clients splurged ahead of a tax increase. Just that compensated for growth of 3. 1% in non-domestic European sales, which had been about a third the pace pros anticipated. The growth rates exclude electronic currency shifts.

"Japan is particularly striking, " said Luca Solca, an analyzer at Exane BNP Paribas. Nations is "not seeing much of a pick up in the quarter, although there have been a number important store renovations which might buy affected performance. "

Hermes increased by 2 percent to 342. 61 euros at 9: 05 an important. m. in Paris, extending their stock's gain this year to 04 percent.

Organic revenue growth of eight percent in the quarter represented an important deceleration from 2014, though turned out "quite encouraging" in the context on full-year guidance, Solca said. Hermes said its mid-term goal with regard to revenue growth remains about eight percent at constant exchange yields "despite the economic geopolitical to monetary uncertainties around the world. "

All your other regions matched estimates, though Hermes highlighted a more challenging environment in the Hong Kong and Macau, and agreed America confirmed its potential for progress.

Demand for leather goods and saddlery remained high, Hermes said. Making at two new facilities increased capacity, while work started entirely on two more workshops in Portugal, the company said.

Watches continued in which to underperform, though the 3. 1 percent downward move was less than analysts predicted. Making perfume sales, which barely grew, suffered with a lack of new products, Solca said.