Record turnover for French luxury brand Hermès

French luxury goods producer Hermès has managed a record 4.8 billion euro turnover in 2015, up from 4.1 billion euro in 2014. Net profit reached 973 million euro.

Despite Paris attacks

The Paris attacks did not hamper Hermès sales as much as feared: sales on its home market did drop 7 % in the final quarter, because plenty of tourists decided not to visit Paris after the attacks on 13 November, but the luxury label still managed a 6 % full-year growth in France. Hermès itself mentioned an “exceptionally excellent result” in France. 

The Japanese Hermès stores have done extremely well as pparently, Chinese tourists diverted from Paris to Tokyo and helped generate an additional 18 % in turnover. Asian turnover, excluding Japan, grew 5 % and European growth was 9 %. Finally, America also managed growth, at + 7 %.

Silk scarves the only downside

Every branch of the company managed to boost turnover, aside from the watch division (which remained level) and the textile division (including the legendary silk “carré” scarves) which dropped 1 %. The leatherwear division soared up 13 %, followed by the jewelry division (+ 9 %), clothing, shoes and accessories (+ 8 %) and perfume (+ 3 %).

The company also hired an additional 500 people in 2015, which brings the total tally to 12,244 employees worldwide. Its 2016 forecast is still a cautious one because of the “global economic, geopolitical and financial insecurity”. That is why the board believes growth this year will dip below the long-term 8 % growth goal (at level exchange rates).