PARIS Aug 29 French luxury goods maker Hermes
said on Friday that foreign exchange rates hit
profitability and would lead to a drop in its operating margin
The company known for its Kelly leather bags and printed
silk scarves posted a decline in operating margin in the first
half to 32.6 percent from 33.1 percent a year ago and said its
full-year margin would be below the 32.4 percent level in 2013.
Last month, Hermes reported a worse-than-expected sequential
slowdown in second-quarter sales growth of 5.8 percent against
10.1 percent in the first quarter, hit by a slump in Japanese
First-half operating profit was 621 million euros ($818
million), up from 584 million in the year-earlier period.
Net cash, which has been rising steadily in recent years,
amounted to 946 million euros as of June 30.
Hermes reiterated its mid-term objective of revenue growth
at constant rates of around 10 percent.
(1 US dollar = 0.7590 euro)
(Reporting by Astrid Wendlandt; Editing by James Regan)