The queen of luxury archives 2018 with strong growth. Hermès closed the year with a Net income amounted to 1,4 billion euro, an increase of 15% compared to 2017 which was the group's record year. The result was mainly driven by the strong growth recorded in China and by the international success of the leather goods line.
The French group, as announced last February, also sets a new record in terms of turnover, which is close to 6 billion (5,96 billion to be exact), up 10,4% at constant exchange rates.
Also on the rise Operating income, which exceeds 2 billion euros (2,05 billion), beating the consensus. The margin (operating result/sales) is confirmed at 34,3%, in line with the record of 34,6% in 2017 and at the top of the sector. Going into detail on individual countries, Asia is the driving force behind turnover (+14%); the USA confirms the favorable momentum (+12%) and Europe (excluding France) rises by 8% thanks above all to the UK and Italy.
Axel dumas, executive chairman of Hermès, said: “Hermès has once again recorded a remarkable performance this year, confirming the strength of the group's growth model”.
The board of directors of the luxury big name will propose to the shareholders' meeting, scheduled for next June 4th, the distribution of a dividend of €4,55 per share.
As far as the 'outlook, Hermès announces that: "In the medium term, despite the uncertainties on economic, geopolitical and monetary growth on a global scale, the group confirms an ambitious target for revenue growth at constant exchange rates".
In Paris the Hermès title gains 1,3% to 598 euros per share. However, the results of the French giant fail to drive the Italian luxury stocks which are placed at the bottom of the Ftse Mib. Ferragamo loses 0,95% to 18,86 euros, Moncler travels down by 1,7% also weighted by the exit from the capital of the French fund Eurazeo. Through an accelerated placement aimed at institutional investors, the transalpine company sold 12.199.626 shares, equal to 4,8% of the capital and voting rights, for approximately 445 million at 36,5 euros per share.
