Hermes expects slow down in 2015
French luxury house Hermes reports full year 2014 net profit rose 9% from a year earlier, despite currency effects caused its operating margin to fall from 2013′s record high. Hermes said net profit for 2014 came in 9% higher than a year earlier at EUR859 million ($938.5 million).
Hermes remains cautious, expecting growth to slow down this year “amid economic, geopolitical and monetary uncertainties.” The company expects sales to increasing 8% in 2015, after an 11% rise last year to EUR4.12 billion.
The Americas region led growth, with sales up 15% in 2014, aided by the extension of the brand’s Atlanta store in the U.S. Hermes also posted double-digit growth in Asia, though it said that the context was “marked by recent events in Hong Kong and the general slowdown in China’s market.”
The company’s board will propose an ordinary dividend of EUR2.95 a share and an exceptional dividend of EUR5 a share. An interim dividend of EUR1.50 paid in early March will be deducted from the ordinary dividend.