Hermes says sales growth slows on China, Europe attacks

Hermes said sales growth slowed in the first three months of the year as Islamist militant attacks in Europe put off some tourists and an economic slowdown in China weighed on demand.

First-quarter revenue reached 1.19 billion euros (927 million pounds), up 6.2 percent at constant exchange rates, the French luxury goods maker said in a statement on Thursday, down from 7.2 percent growth in the last three months of 2015.

The maker of printed silk scarves and Kelly handbags reiterated that 2016 sales growth could be below its medium-term target of 8 percent at constant exchange rates "owing to the economic, geopolitical and monetary uncertainties around the world".

Hermes said its Silk and Textiles business line suffered from the impact of the attacks in Europe and slowing sales in Greater China and the United States. Its watches division was hurt by a "still challenging market, particularly in Asia excluding Japan".