Hermes 1H Net Profit Up 9 Percent

The French luxury goods company reported a net profit of 128.1 million euros ($174.3 million) compared with 117.5 million euros a year earlier.

The weak dollar had an "appreciable impact" on net profit, which would have risen 20 percent at constant exchange rates, Hermes said.

Sales in the first half rose 2.9 percent to 721.1 million euros ($981.4 million). Operating income rose to 185.8 million euros ($252.9 million).

All divisions delivered growth, Hermes said.

Silks and textiles sales rose 14 percent over the period, and tableware sales were 20 percent higher than the previous year. Ready-to-wear and accessories sales rose 11 percent, and perfumes delivered a "robust" 12 percent increase after the launch of Terre d'Hermes, Hermes said of the first half.

Leather goods sales increased 4 percent in the first half, with an 11 percent jump in bag sales, while watch revenues increased 5 percent.

Hermes said it plans to invest in its distribution system in the second half, with a dozen branches to be opened or renovated, including the expansion of its Paris store on rue du Faubourg Saint-Honore.