Hermés leather goods sales rise 9%

France
Published:  20 March, 2014

Hermès said that operating profits climbed 8.9% last year to a record high as the Paris-based maker of luxury goods outperformed rivals in a slowing market. Sales at the group’s ready-to-wear and accessories division rose 18% last year while leather goods and saddlery climbed 9%.

The company, famous for its leather goods, said that 2013 operating profit reached €1.2bn, while net profits increased 6.8% compared with the previous year to €790m – in line with expectations.

Net profit at the Paris-based, family-controlled group has almost tripled since the 2008 financial crisis and ensuing global recession.

In a statement, Hermés said that operating profit margins reached an all-time high of 32.4 % – 0.3 percentage points higher than in 2012.

It said that it would propose a dividend of €2.70 compared with €2.50 last year.

Hermès is coping with a slowdown in global luxury spending better than rivals, which have been hit hard by a Chinese government decision to crack down on so-called conspicuous spending and gift-giving by officials.

Meanwhile, the group’s limited production capacity has also helped. Hermès has the benefit of excess demand and waiting lists.

Full-year sales last year rose 13% at constant exchange rates compared with 2012, to reach €3.8bn. On a comparable basis, sales in non-Japan Asia increased 16%, 14% in America and 12% in Europe.

comments powered by Disqus