Hermes CEO expects a difficult rest of 2012
Patrick Thomas, CEO of luxury French maison HERMES toldAFP this week he would expect a“very difficult“ rest of 2012, especially because of elections and the financial turmoil, at least more difficult than the strong first quarter, while confirming its sales increase forecast between 10 and 11%.
“I see a difficult rest of 2012 as I think there will be disruptions and currency turmoil which will interfere with our business and may have impacts in unexpected directions,” he said. After a record year in 2011, Hermès posted a strong sales growth rate of 21,9% in the first quarter 20112 to 776.9 million euros), above analysts’ expectations.
“I greatly fear the elections, especially in France, and I fear the monetary consequences of these deadlines, so the risks that can happen to our businesses, not just for oursel
es but also for businesses in our industry,” said Thomas.
“We are well equipped to respond, the products are desirable, there is now international-Hermes no longer that 15-16% of its turnover in France, while it puts us a little sheltered. but for the exchange rates we are not safe, “he added.