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Prada's H1 Operating Profit up 17%, Asia, Europe Boost Sales

A man wearing a face mask following the coronavirus disease (COVID-19) outbreak walks past a store of Italian luxury brand Prada on a shopping street in Beijing, China, January 20, 2021. REUTERS/Tingshu Wang
A man wearing a face mask following the coronavirus disease (COVID-19) outbreak walks past a store of Italian luxury brand Prada on a shopping street in Beijing, China, January 20, 2021. REUTERS/Tingshu Wang
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Prada's H1 Operating Profit up 17%, Asia, Europe Boost Sales

A man wearing a face mask following the coronavirus disease (COVID-19) outbreak walks past a store of Italian luxury brand Prada on a shopping street in Beijing, China, January 20, 2021. REUTERS/Tingshu Wang
A man wearing a face mask following the coronavirus disease (COVID-19) outbreak walks past a store of Italian luxury brand Prada on a shopping street in Beijing, China, January 20, 2021. REUTERS/Tingshu Wang

Prada posted a 17.1% increase in adjusted operating profit on Tuesday as the Italian luxury group saw double-digit sales growth in Asia and Europe.

Prada's operating profit rose to 575 million euros ($623 million)for the first six months of the year, beating the 552 million seen in an analyst consensus provided by Visible Alpha, Reuters reported.

Net revenue rose by 17% at constant exchange rates to 2.55 billion euros.

Retail sales of the Prada brand rose by 6% while those at smaller brand Miu Miu almost doubled, the group said.

"While we are vigilant, we remain committed to our strategy and to our ambition to deliver solid, sustainable and above-market growth," CEO Andrea Guerra said in a statement.

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Fashion

Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)

Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.

Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.

Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.

One of the most steady performers in the luxury goods sector -- even as economic conditions worsen -- the French group's results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.

Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity, and CEO Axel Dumas told reporters the company had seen "no big interruption in trends".

However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.