Hermès reports record financials for 2013, as it add new products and production facilites
French luxury maison Hermès has further improved its performance in 2013, registering record sales, profits and margins, results that confirm the exceptional health of the company. In a context that has “not been easy”, Hermes reached “a historic achievement”, welcomed President Axel Dumas, only to take reigns from the retirement of Patrick Thomas late January.
Hermès combines the records for several years and still registered in 2013 a net profit of € 790 million (+6.8%), an operating profit of 1.22 billion euros (+8.9%) and a margin of 32.4%, unprecedented since the IPO in 1993.
Hermès’ growth was triggered by Asia Pacific, as well as dynamic sales in the U.S. and solid growth in Europe thanks to foreign customers.
” We are very confident in 2014″ especially because ” the United States are working well ,” but ” we are also cautious ,” said Axel Dumas , citing situational contingencies. “I’m a paranoid optimistic,” he told reporters . Hermes expects a decline in profitability in 2014, primarily due to the yen. The brand generates 45 % of its sales in Asia and the Japanese remain the main foreign customers. In the medium term , the group is still a growth of 10 % at constant exchange rates.
Hermès will launch a universe bath (shower gel, body lotion … ) and home fragrances ( lighted candles ..) . Two new leather workshops are announced for 2015-2016 in Franche -Comté , bringing the total to 14. Also on Hermes’ retail development program in 2014 : six new stores in 2014 , including a fifth ” Hermes House” in Shanghai, and eleven renovations. The group created more than 900 new jobs last year , a good half in France . It has a huge net cash of one billion euros. “It’s good , but it is not yet … Apple ,” joked Axel Dumas.