French luxury group Hermès has, for the first time in its existence, surpassed the 4 billion euro turnover mark. At the same time, it has warned that its profit margin will probably be slightly below that of 2013.
4.12 billion euro turnover
Hermès, founded in 1837, has managed a record turnover of 4.12 billion euro, which is a 9.7 % increase or even a 11.1 % increase if exchange rates had remained stable. Particularly its own store network performed well, growing turnover 12.7 %. However, the group immediately warned that its operational margin will be "slightly above 31 %", which is below last year's number (32.4 %).
Its fourth quarter was the worst of the entire year though: growth dropped from 12 % in its first semester to 10.4 % in the third quarter and 9.6 % in its fourth. Its American (+ 15 %) and Japanese (+ 13 %) markets continue to shine, but its European performance lagged behind a bit, at + 7 %.
Its watch branch was the only one with negative numbers (- 11 %), while every other branch grew considerably: leather (+ 15 %), ready-to-wear (+ 12 %), accessories (+ 12 %), perfumes (+ 10 %) and silk & business textile (+ 8 %). Its full-year numbers will be published on 25 March.
For the current fiscal year, Hermès expects a slower growth, 'merely' 8 %, based on the continuously difficult economic and geopolitical situation and the currency fluctuations.