Hermès, the maker of Birkin and Hermès bags, reported a 7% increase in sales for the second quarter. The company's sales in comparable currency conditions grew by 6.7%, reaching €4.1 billion ($4.67 billion).
Although the operating margin of 41% exceeded expectations, the relatively modest sales growth likely drew investors' attention. Hermès has navigated the crisis caused by COVID-19 more successfully than many competitors.
In the first quarter, sales growth fell below the high single-digit range for the first time, attributed to the conflict in the Middle East. Hermès reports that the impact of the conflict has weakened in the second quarter, with sales in France increasing by 6%.
