By Joshua Kirby


Shares in Hermes International SCA trade sharply higher Friday after the luxury-goods company reported soaring earnings for the first half, heralding possible upgrades to full-year expectations.

At 0807 GMT, shares were up 9.2% higher at EUR1,355.

Recurring operating income climbed to 2.3 billion euros ($2.35 billion) in the January-June period from EUR1.72 billion a year before, Hermes said, while the operating margin attained a new record level of 42%, a point higher than in the same period last year.

Revenue rose 23% at constant currency in the half-year, reaching EUR5.48 billion, though the pace of growth slowed in the second quarter. Sales in China were hit by store closures and sanitary restrictions in April and May but rebounded in June, Hermes said.

The company didn't set any financial targets for the year, but said it remains confident of attaining an "ambitious" goal of medium-term revenue growth at constant currency. Nevertheless, consensus estimates for the full year are likely to rise following the expectation-defying results, analysts at Bernstein said in a note.

"This set of results confirms that Hermes is likely going to be [the] most resilient luxury goods player in a recession, and an appropriate hiding place for those seeking cover," the U.S. brokerage said.


Write to Joshua Kirby at; @joshualeokirby


(END) Dow Jones Newswires

July 29, 2022 04:29 ET (08:29 GMT)

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