Quantcast
Latest Stories

Hermes posts record profit in 2012



AFP FILE PHOTO

PARIS—Luxury fashion group Hermes, known for silk scarves and handbags, reported on Thursday a record profit for 2012, confirming a stellar performance for France’s luxury industry as a whole last year.

Net profit last year soared 24.5 percent to 740 million euros ($954 million), well above an analyst expectation of between 710 to 720 million euros.

Operating profit during the 12-month period rose by 26.4 percent to 1.12 billion euros when analysts had been expecting 1.09 million.

The company’s operating margin ended the year at 32.1 percent and was the highest since Hermes, founded in 1837, went public in 1993.

In February Hermes, which makes the signature Kelly and Birkin bags, reported a 22.6-percent rise in sales last year to 3.48 billion euros ($4.66 billion).

The sales figure exceeded expectations by analysts who had foreseen a figure of about 3.42 billion euros.

Sales were boosted by activity in Asia where the company does most of its business and where it opened two new outlets, one in Taiwan and one in China. Hermes also enlarged six other outlets.

Sales in Asia rose by 28.6 percent and, excluding Japan, they rose by 36.2 percent, notably owing to demand in China.

In America, where the sales network was increased, sales rose by 22.5 percent.

The company said that it was optimistic about the outlook for 2013 but did not make any forecasts.

Sales at the company have doubled since 2008.

Last month, French luxury rivals LVMH and PPR also posted bumper profits for 2012.

Hermes and LVMH are locked in a bitter legal battle.

Since 2010, LVMH has slowly built up its stake in Hermes, despite bitter protests by the still family-dominated company. By the end of May 2012, the LVMH share of Hermes stood at 22 percent.

Resisting what it calls a hostile takeover by LVMH, Hermes has filed a legal complaint over the LVMH share-buying spree.

LVMH owns a stable of luxury companies including Louis Vuitton, Givenchy and Moet and Chandon champagne.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , France , Hermes , Lifestyle , Luxury



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Pakistan library named ‘bin Laden,’ as memory fades
  • US teacher fired over comment on black president
  • Magnitude-7.5 earthquake shakes Mexican capital
  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Filipinos, Dutch re-enact crucifixion of Christ
  • Sports

  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Multicultural flock marks Good Friday in San Francisco
  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • Marketplace