French fashion brand Hermès’ fourth quarter turnover dropped 0.4 % but its full-year results were great, with a 7 % turnover increase and improved margins compared to the year before.
Growth in every region
Hermès’ total turnover for 2017 reached 5.549 billion euro, which would have been a 9 % increase if exchange rates had remained stable. Now, it was a 7 % increase. Fourth quarter turnover improved 4.6 %, but exchange rates turned that into a 0.4 % drop.
Growth in its full fiscal year is because of growth in every single region: Asian turnover (excluding Japan) grew 11 % and Japanese turnover 4 %. North and South American turnover jumped 8 %, mainly thanks to excellent American results. Europe also posted an 8 % increase, thanks to new store openings in London, Munich and Copenhagen. Every single division also improved its turnover: perfume and leatherwear shot up 10 % and ready-to-wear & accessories followed suit with a 9 % increase.
Hermès will only publish its full-year results on 21 March, but did reveal a bit: it forecasts higher margins than last year. It will also work on a new website, which should launch in Europen by the end of the first quarter.