Hermes posts profits and record-high operating margins

20 March 2014

High-end French brand Hermes hiked its dividend after declaring a rise in profits and a record-high operating margin last year.
Despite diminished sales at Gucci and Louis Vuitton resulting from a wide-scale effort to thwart corruption in China, Hermes has posted resilient growth.
In a statement, Hermes said that 2013 operating profits rose 8.9% to €1.2 billion, and its operating margin reached an all-time high of 32.4% of sales, compared to 32.1% in 2012.
In February, Hermes, known for iconic Kelly and Birkin leather handbags, posted 2013 sales of about €3.8 billion, up 13%, to outperform rivals like LVMH, whose organic fashion and leather sales rose 5% during the same period.
Also, full-year sales rose 16% in Asian markets excluding Japan, 14% in the Americas and 12% in Europe. Net profit rose 6.8% to €790 million and the company said it planned to pay a dividend of €2.70 a share for 2013, up from €2.50 for 2012.

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