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Bloomberg
Hermes International reported record first-half profitability as the maker of $10,000-plus Birkin handbags benefited from brisk sales in China, a trend that shows no sign of easing off even as stock prices slump in the Asian nation.
Recurring operating income amounted to 34.5 percent of sales, up 0.2 point, the Paris-based company said in a statement. Analysts predicted
34.4 percent, based on the median estimate compiled by Bloomberg News.
Investors in the luxury sector are watching closely to see if a China-driven boom will drift to a soft landing or if wallets will snap abruptly closed. In July, Hermes reported that first-half sales rose 13 percent in Asia at constant exchange rates despite a rout in the Shanghai stock exchange.