Record turnover for French luxury group Hermès

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.