Hermes third-quarter growth slows as ready-to-wear turns negative
Hermes third-quarter growth slows as ready-to-wear turns negative PARIS, Oct 22 (Reuters) - Birkin bag maker Hermes HRMS.PA on Thursday posted slightly weaker third-quarter revenues than analysts expected as ready-to-wear sales turned negative for the first time in years amid what Hermes called a "challenging" economic context.
Quarterly sales rose 4.3% year-on-year in currency-adjusted terms to €4.10 ($4.61) billion, slightly below the 5.2% growth rate expected by analysts polled by Visible Alpha.
It was the weakest quarterly sales growth rate in six years.
Quarterly sales of Hermes's leather goods division, which makes its classic Birkin and Kelly handbags, rose 10.8%, while sales at the company's ready-to-wear and accessories division, accounting for over a quarter of revenues, declined by 2% from last year.
Hermes finance chief Eric du Halgouet told journalists in a call that the crucial Chinese market was "very difficult", but added he remained confident on long-term prospects in the country.
($1 = 0.8894 euros)
(reporting by Alessandro Parodi, editing by Tassilo Hummel)