PARIS (Reuters) – The Chinese are still gnawing adult Birkin bags and singular Cognacs, boosting sales for European luxury goods companies Hermes and Remy Cointreau and relaxing fears that direct might be cooling.
Luxury products companies have turn increasingly contingent on China as European business lift back, and they are anxiously examination for any pointer that direct in a world’s second largest economy is slowing.
Those fears abated on Thursday when French spirits organisation Remy Cointreau kick forecasts with a 24.4 percent arise in first-quarter sales, driven by clever direct for a cognac in Asia and a United States.
Similarly, Hermes reported a 13.4 percent arise in second-quarter sales upheld by clever expansion in a Asia-Pacific region outward of Japan, that rose 26.9 percent.
“We see no slack in China,” Hermes Chief Executive Patrick Thomas pronounced in a phone interview.
Hermes derives 32 percent of a sales from Asia Pacific incompatible Japan, creation it one of a company’s many critical markets. Growth in Asia helped equivalent slower expansion in France and a U.S.
“The good warn is Asia, with a net acceleration notwithstanding a formidable (strong) bottom of comparison.” pronounced Thomas Mesmin, a Paris formed researcher covering Hermes for CA Chevreaux.
The Asia-Pacific region, especially driven by China, is a fastest-growing oppulance marketplace in a world. By 2014 it could turn a second-largest oppulance market, after Europe, according to investigate from consulting organisation Bain.
But China’s expansion rate slowed for a sixth unbroken entertain in a duration to finish June, to a slackest gait in some-more than 3 years.
Hermes has been quite active in going after a Chinese patron who covets a French company’s iconic leather handbags and printed silk scarves, though also values an Asian aesthetic.
To constraint those business it owns a vital interest Shang Xia, a Chinese oppulance code founded in 2008 that specializes in dim timber seat and porcelain bowls.
Remy Cointreau has also targeted a rich Chinese buyer, selling a Louis XIII cognac, that can sell for around 2,000 euros ($2,500) a bottle. Asia is Remy’s top-selling region, representing 62 percent of a group’s cognac sales.
Remy Chief Financial Officer Frederic Pflanz reassured analysts during a call on Thursday that direct remained strong. Remy Cointreau creates 38 percent of sales in a expansive Asia and Pacific region.
“For a marketplace in China we have not seen to date any slowdown. There is continued consumer unrestrained for a high-end products,” he said.
Pflanz pronounced Remy’s cognac was also benefiting from clever direct from business in Japan and Southeast Asia.
He played down analysts regard about a probable impact of a Chinese supervision devise to anathema polite servants from regulating supervision supports to squeeze oppulance goods.
Both companies reported pretty clever direct in their home European market, where a mercantile predicament continues to overflow a continent.
The builder of Remy Martin cognac, Cointreau liqueur and Mount Gay Rum pronounced it was stability to guard a mercantile conditions in Europe closely though was assured of generating “steady and essential growth” in a financial year to Mar 2013.
Hermes reported clever expansion in Europe, and kept to a 2012 forecast, though remarkable that French sales were somewhat diseased in a entertain and a prolongation of some leather products had been detained in May by a series of open holidays.
Remy Cointreu SA shares were adult 4.7 percent during 1150 GMT (7.50 a.m EDT) , while opposition spirits organisation Pernod Ricard combined 3.4 percent. Hermes shares, that are thinly traded, were adult 2.4 percent.
Last week Britain’s Burberry reported a decrease in first-quarter sales expansion due in partial to a slack in Asia.
Analysts will be looking to French oppulance powerhouse LVMH, that has formerly sounded a note of counsel on Chinese sales, to see either it has seen a sales slack in Asia. The association reports sales total subsequent week.
(Reporting by Nina Sovich; Additional stating by Pascale Denis; Editing by Elaine Hardcastle)
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