Hermès, the French maker of Birkin bags, said sales of the latest fashion collections, accessories and fragrances spurred growth in first-half earnings as it reiterated its forecasts for 2013.
Operating profit rose 14 percent to $773.6 million, the Paris-based company said yesterday. The stock advanced as much as 3.6 percent, the most in more than a month.
Fashion and perfumes propelled revenue in the period as growth in bag sales was constrained by production capacity.
To increase output, Hermès has been hiring about 200 craftsmen a year to add to the about 2,200 artisans working at the leather-goods division, said the unit’s head Guillaume de Seynes. The company plans to add two production facilities in France devoted to “artisanal activities.”
“Demand for Hermès products remains strong,” the company said. Full-year profit as a percentage of sales this year could be close to 2012’s record 32.1 percent.