Hermès sees profits climb almost 50%

French group Hermès joins the long list of luxury groups with excellent semi-annual results. The group's turnover went up 22% to 1.305 billion euro, while net profits rocketed to 290.9 million (+49.5%). This was the most profitable six months yet for the handbag and scarf producer, as operating profits as a percentage of sales rose to 32%.

Historically high margins

These terrific results allow Hermès to maintain its estimates for 2011: a turnover growth of 12 to 14% and an operational margin which is “historically high”. The group vows to invest in its own workshops and stores (ten new stores are planned), claiming this strategy, combined with its craftsmanship, know-how and thorough control of its own distribution network, is what causes its success. Analysts add to that its “timelessness” and “classical image”, causing the brand not to be harmed by passing fashion trends and the economic crises.

 

The group is one of the most diversified fashion companies in the world, especially known for its leather (49% of turnover). Clothing and accessories (20%), silk (12%), perfumes (5%) and watches (5%) make up the other half of the company's turnover, the latter being the fastest growing department in the company.

Hermès has been on the stock exchange since 1993 and is partly (20%) owned by its rivals LVMH since 2010.

 

 

French group Hermès joins the long list of luxury groups with excellent semi-annual results. The group's turnover went up 22% to 1.305 billion euro, while net profits rocketed to 290.9 million (+49.5%). This was the most profitable six months yet for the handbag and scarf producer, as operating profits as a percentage of sales rose to 32%.

Historically high margins

These terrific results allow Hermès to maintain its estimates for 2011: a turnover growth of 12 to 14% and an operational margin which is “historically high”. The group vows to invest in its own workshops and stores (ten new stores are planned), claiming this strategy, combined with its craftsmanship, know-how and thorough control of its own distribution network, is what causes its success. Analysts add to that its “timelessness” and “classical image”, causing the brand not to be harmed by passing fashion trends and the economic crises.

 

The group is one of the most diversified fashion companies in the world, especially known for its leather (49% of turnover). Clothing and accessories (20%), silk (12%), perfumes (5%) and watches (5%) make up the other half of the company's turnover, the latter being the fastest growing department in the company.

Hermès has been on the stock exchange since 1993 and is partly (20%) owned by its rivals LVMH since 2010.

 

 

Questions or comments? Please feel free to contact the editors


Amazon launches its own meal box

20/07/2017

Amazon keeps up its innovation drive and has now turned its attention to the meal box industry. In several cities with a Amazon Fresh presence, customers can now order a meal box.

Decent profit growth for Unilever

20/07/2017

Over the first six months of 2017, Unilever’s profit and turnover grew substantially, mainly thanks to price increases and a positive evolution in the care and ice cream divisions.

Carrefour rolls out discount formula Supeco in Italy

19/07/2017

The Carrefour group just opened its first full-blown Supeco store in Italy. The soft discount formula targets both families and professional customers.

Amazon Fresh expands to Hamburg

19/07/2017

Amazon continues to expand its Amazon Fresh service across Germany after its launch several months ago. Following Berlin and Potsdam, it is now available in a large part of Hamburg.

Subway trials new formula

19/07/2017

Fast food chain Subway is trialing a new formula in several of its stores, with a visually altered design and several technological innovations.

Unilever will not get Reckitt Benckiser's food division

19/07/2017

American McCormick & Co has acquired Reckitt Benckiser’s food division for 4.2 billion dollars (3.6 billion euro), trumping Unilever to the purchase.

Back to top