Hermès further improved its performance in 2013, achieving record sales, profits and margins, results which confirm the exceptional health of this emblem of French chic. In a context that "has not been easy", Hermes has achieved "an historic result", declared the president Axel Dumas, who was left alone in command after the retirement of Patrick Thomas at the end of January.
The manufacturer of silk scarves and Kelly and Birkin bags has been accumulating records for several years and recorded again in 2013, with a net profit of 790 million euros (+6,8%), an operating profit of 1,22 billion euros (+8,9%) and a margin of 32,4%, for the first time since its entry on the Stock Exchange in 1993. Hermès therefore remains one of the most profitable brands together with Chanel and Louis Vuitton.
The company had already posted record sales in February of 3,75 billion euros (+7,8%). Hermès' growth derives from its success in Asia, but also from a particularly strong dynamic in America and from a growing European market thanks to tourist shopping. As far as Ukraine and Russia are concerned, Hermès does not seem to be worried, as Russian customers represent less than 5% of turnover.
Since 2008, the family business founded in 1837 has more than doubled its turnover. The results shine all the more as the global luxury market slowed down last year's pace, breaking with the crazy dynamics of 2010-2012.
As regards 2014, "we are very confident - added Alex Dumas - above all because "the United States are working well" but, "we are also cautious", he admitted, always considering the unforeseen economic trends. Hermes expects profitability to decline in 2014, mainly due to the yen. The brand with the carriage generates 45% of its sales in Asia and the Japanese remain its main foreign customers. In medium-term financing, the group is still up 10% at constant exchange rates.
