France based Hermes International has announced it will no longer set mid-term annual sales growth targets and is abandoning its 8% annual growth forecast due to increasing trading uncertainties in the luxury market.

“In light of the current economic and currency uncertainty, we no longer wish to provide a written guidance,” said Axel Dumas, Chief Executive, Hermes. “We have to be frank and transparent, we see first-half results that were better than we expected, but there is a lot of uncertainty around the world and the rigidity of written guidance means we are less flexible”, he added.

According to Hermes, it continues to outperform in the luxury market. First-half earnings before interest and tax in 2016 rose to €826.8 million, while analysts’ estimates had predicted €818.5 million.

The luxury house said it will maintain its 2016 guidance and reported a 13% rise in net profit to €545 million.

Sources: Bloomberg/Fashion Law