Home Business Hermes and Burberry Financial Results Beat Expectations

Hermes and Burberry Financial Results Beat Expectations

Hermes and Burberry’s financial results for Q3 of 2015 have beaten analysts’ expectations.

The figures come at a challenging time for luxury brands in the key Asia-Pacific region, including China.

Hermes sales rose by 7.9% in Q3 on a like-for-like basis, ahead of forecasts, helped by demand for leather goods and ready-to-wear fashion.

Meanwhile, Burberry reported a better-than-expected 3% rise in first-half underlying profit.

The maker of trench coats and cashmere scarves said it made a pre-tax profit of £153 million ($233 million) in the six months to September 30.Luxury brands financial results

Burberry also said its comparable store sales improved in its third quarter compared with the second.

Meanwhile, Hermes stuck to its target of increasing annual sales by 8% at constant exchange rates.

It said that in the quarter Japan had delivered 16.6% like-for-like growth, and Europe 14.8%.

However, Asia-Pacific growth, excluding Japan, dwindled to 1.5% amid “a difficult context in Hong Kong, Macao and to a lesser extent in continental China”.

In October, Burberry had also warned of an increasingly challenging environment for luxury goods in China and Hong Kong.

Last month, LVMH, the world’s biggest luxury group, said the summer stock market collapse in China had hit sales, particularly at its flagship Louis Vuitton brand.

Cosmetics giant L’Oreal has also warned that demand for its luxury products has suffered a slowdown in Hong Kong and at airports.