The company known for its Kelly leather bags and printed silk scarves posted a decline in operating margin in the first half to 32.6 percent from 33.1 percent a year ago and said its full-year margin would be below the 32.4 percent level in 2013.

Last month, Hermes reported a worse-than-expected sequential slowdown in second-quarter sales growth of 5.8 percent against 10.1 percent in the first quarter, hit by a slump in Japanese demand.

First-half operating profit was 621 million euros (493.19 million), up from 584 million in the year-earlier period.

Net cash, which has been rising steadily in recent years, amounted to 946 million euros as of June 30.

Hermes reiterated its mid-term objective of revenue growth at constant rates of around 10 percent.

(Reporting by Astrid Wendlandt; Editing by James Regan)