Hermes reports record profit results and confirms it will not increase prices
French luxury house of Hermes will resist raising prices significantly in 2013 even as profitability may decline as the Japanese yen weakens against the euro. While there may be some minor adjustments, “there won’t be a big movement” in the amount the Paris-based company charges customers, CEO Patrick Thomas said today as Hermes reported record profitability for 2012.
Hermes is aiming for sales growth of about 10 percent in 2013, Thomas said, adding that “too many unpredictable factors” called for prudence. Since the start of the year, business has been good, with the only change being slightly weaker sales in January because of the later timing of Chinese new year, the CEO said.
Operating profit rose 26 percent to 1.12 billion euros ($1.45 billion) in 2012, Hermes said earlier in a statement. Analysts predicted profit of 1.09 billion euros, according to the average of 15 estimates compiled by Bloomberg.