Insight Report 4 minutes PremiumHermes Paris (RMS.PA) Hermès Cements Position as Luxury Goods Leader: Impressive 2Q16 Revenues Despite Challenging Demand Backdrop Coresight Research July 27, 2016 Executive Summary In 2Q16, Hermès reported very strong year-over-year sales growth of 6.0%, and 8.1% in constant currency, beating analysts’ expectations of 5.6% growth in constant currency. The result also marked a sequential quarterly acceleration from 6.2% constant currency revenue growth in 1Q16. Revenues were driven by momentum in all geographic regions, with robust sales even in France, despite lower tourist flows in the country. Outperformance in the leather goods and saddlery division and perfumes offset softness in other divisions. The luxury goods sector has been experiencing numerous severe headwinds, including demand slowdown in China, low oil prices, stock market and currency volatility, and fallouts from terrorist attacks. Given the challenging demand outlook and weakness at other luxury goods companies, Hermès’ performance is nothing short of impressive. The company’s luxury goods peers have reported soft revenue and profitability trends in 1Q16/1H16 (please see the performance table at the end of this report). This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: Decoding the GLP-1 Trend: How Is the Ozempic Economy Impacting CPG Retail?Market Outlook: US Food Away from Home—A Challenging Economic Backdrop To Weigh on Growth in 2023Weekly US and UK Store Openings and Closures Tracker 2024, Week 9: Macy’s Announces Store Opening and Closure PlansGroceryshop 2023 Wrap-Up: Exploring the Top Five Themes Driving Grocery Retail Innovation