In a weak session for the European stock exchanges, the luxury sector saved itself in the wake of the good news arriving in the last few hours from the half-yearly accounts of three big names such as Salvatore Ferragamo, L'Oréal and Hermès. At the beginning of the afternoon, Piazza Affari dropped 0,6%, while Paris dropped 0,8%.
FERRAGAMO: NET PROFIT +81%, REVENUES + 11%
The Italian group closed the first half with net profits of 81 million euros, an increase of 81% compared to the 56 million euros recorded in the same period last year. Revenue in the period rose to $625 million, up 11% year over year. Ebitda was 131 million (+26%) while Ebit stood at 112 million (+26%). The gross margin for the first six months amounted to 394 million, up 10% on the year, while the incidence on turnover decreased to 63,1%, from 63,6% a year ago, mainly "due to the unfavorable effect of exchange rates and the distribution channel mix”, explains the company.
Operating costs rose by 4% to 282 million, the incidence of which however fell to 45,2%, from 48% a year ago. Lastly, net financial debt rose to 78 million, from 58 as at 31 December, after a distribution of dividends to shareholders in the quarter for 56 million. Ferragamo confirms "an expectation of further growth in 2013 in both turnover and net profit".
HERMES: PROFITS +14%, SALES +11%
The Hermès group has confirmed its guidance for the full year, after closing the first half with a net profit up 14% per annum to 381,7 million euros, an operating profit up 14% to 584,1 million and an operating margin of 33,1%, while sales increased by 11%, to 767,2 million, thanks to strong performances in Europe and the United States.
“In light of the sales levels achieved in the first half of the year – reads a note from the company – consolidated sales at constant exchange rates could slightly exceed the medium-term growth target of 10%”. According to the French luxury giant, depending on currency fluctuations, the recurring operating margin could approach the all-time high of 32,1% reached in 2012.
L'OREAL: PROFITS +5,6%, REVENUES +4,7%
Another French group, L'Oréal, closed the first half with net profits of 1,7 billion euros, up 5,6% from 1,62 billion in the same period of 2012. Earnings per share rose from 2,75 to 2,94 euros. There was also a slight increase in revenues, from 11,21 to 11,73 billion (+4,7%).
“In a market that is growing slowly – commented the number one of the group, Jean-Paul Agon – L'Oréal has maintained a good sales dynamic and made further progress in profits, achieving good results in all divisions and in all geographical areas".
