Hermès FY15 revenues grow 18 percent, lowers outlook

The Hermes Group's consolidated revenues amounted to 4,841 million euros (5,466 million dollars) in 2015, up 18 percent. At constant exchange rates, growth was over 8 percent, in a challenging environment. Growth remained solid in the fourth quarter with over 15 percent at current exchanges rates and 7 percent at constant exchange rates, which the company said were despite the impact of the recent events in France and, to a lesser extent, in Europe.

Sales growth driven by all regions

The sustained rise in sales in 2015 in Group stores increased 9 percent driven by growth in all the regions. Hermès continued to develop and improve the quality of its distribution network. Japan with over 18 percent rise confirmed the excellent performance achieved over the first nine months of the year, Asia excluding Japan with 5 percent rise improved owing to sales development in China, despite a difficult economy in Hong Kong and Macao.

America posted 7 percent increase. At the end of the year, a new flagship store was opened in Miami and the Houston and Dallas stores were renovated and extended. Europe reported 9 percent growth in the Group's stores, particularly with the renovation and extension of the Bond Street store in London and the Gum store in Moscow. France witnessed 6 percent increase in sales.

Different product sectors confirmed their development on the back of growth in Leather Goods and Saddlery that reported over 13 percent rise after the increase in production capacities at the two new sites in Isère and Charente, and the new workshop in Héricourt. The Ready-to-wear and Accessories division with over 8 percent increase benefited from the success of the Nadège Vanhee-Cybulski's first collections, and the fashion accessories sector, particularly shoes. The Silk and Textiles sector declined marginally by 1 percent, owing to the year-end events in France, suffered from slowing sales in Greater China but continued to develop in the other regions.

The Perfumes division saw 3 percent growth with the success of Terre d’Hermès and the new additions to the Jardin et Hermessence collections. Watches, which remained stable, continue to be penalized by wholesale business in a still challenging market, particularly in Asia excluding Japan. Other Hermès sectors posted growth of 9 percent, due largely to the success of Gold Jewellery and development of the Home universe.

Interim dividends and outlook

Given the available cash flow, the Executive Management decided on February 9 to pay an interim dividend of 1.50 euros (1.69 dollars) per share.

The company said that it will continue its long-term development strategy based on creativity, maintaining control over know-how and a singular communication. Due to the economic, geopolitical and monetary uncertainties around the world, sales growth in 2016, it said, could be below the medium-term goal of 8 percent revenue growth at constant exchange rates.