French fashion company Hermès has had an excellent fiscal year, with profit and turnover increases in 2013, which means it outperformed plenty of competitors in the luxury branch.
Growth in all regions and branches
The full-year turnover reached 3.76 billion euro, a 7.8 % increase that was mostly due to higher sales in its own stores (+13 %). Turnover grew in every region: Asia (without Japan) grew turnover 16 %, Japan itself 7%. America 14 % and Europe had a 12 % increase.
The ‘ready-to-wear and accessories’ division grew the most, with an 18 % increase, ‘Perfumes’ went up 15 %, ‘Silk and textiles’ 12 % and leatherwear grew 9 %. Strong growth in 2012 meant that Hermès watches only grew 1 % this past year.
Operational margin at record height
These results helped Hermès’ operational margin to reach record heights: 32.4 %, with net profit at 790 million euro, which is in itself a 6.8 % increase compard to 2012 (at 740 million euro).
Hermès wants to continue on this path in 2014: basing its long-term strategy on creativity, maintaining control over its know-how, expanding its distribution network, strengthening its production capacity and protecting its supply sources, the company said.