Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — French luxury-handbag maker Hermès International SCA added to the industry's recent woes, saying sales growth this year may miss its medium-term target.
Revenue could rise by less than the company’s goal of 8 percent at constant exchange rates, Hermès said in a statement Wednesday, citing “economic, geopolitical and monetary uncertainties around the world.”
Recent earnings reports from the industry have been glum, with Richemont's Christmas season sales dropping for the first time in seven years and Swatch Group AG's 2015 profit missing estimates. One of the exceptions has been LVMH, whose fourth- quarter sales exceeded estimates on demand for Louis Vuitton bags in Japan and Europe.
Hermès also reported its slowest sales growth in six years as November’s Paris terrorist attacks led to a drop in tourist spending. Revenue climbed 7.2 percent on that basis.
By Thomas Mulier and Paul Jarvis; editors: Matthew Boyle and Paul Jarvis.
