News 
The Group’s consolidated revenue amounted to 2,853 million euros in the first half of 2018, +11% at constant exchange rates and +5% at current exchange rates. Recurring operating income increased by 6% to reach 985 million (34.5% of sales).
After inclusion of 53 million in capital gains on disposal of property, operating income amounted to 1,037 million (36.3% of sales) and net profit increased by 17% to 708 million.
In the first half of 2018, revenue increased in all geographical areas worldwide. Asia excluding Japan (+15%) continued its outstanding performance, with positive momentum in continental China and the whole region. Japan (+7%) confirmed its robust growth with no price effect. America (+12%) progressed well with high demand. Europe excluding France (+7%) and France (+8%) achieved good performances despite the strengthening of the euro.
The performance in the first half was driven by solid growth across all business lines. Growth in Leather Goods and Saddlery (+8%) was sustained over the first half of the year, based on collections combining style, know-how, diversity of materials and functionality. The Ready-to-Wear and Accessories division (+17%) pursued its growth, thanks to the pertinence and boldness of our men’s and women’s ready-to-wear collections and the success of fashion accessories and footwear. The Silk and Textiles business line (+7%) confirmed its favourable momentum with sustained demand, thanks to the diversity of materials and wealth of creations, particularly around silk twill and cashmere. Driven by the successes of Terre d’Hermès and of Twilly d’Hermès, Perfumes (+15%) recorded a sharp increase. The Watches business line (+9%) posted good sales performance in the group’s stores. Other Hermès business lines (+24%), which encompass Jewellery, Art of Living and Hermès Table Arts, recorded strong growth over the period.
In the medium-term, despite growing economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.
September 20, 2018