Hermès posts rise profits for 2018

The Hermès Group’s consolidated revenue for 2018 amounted to 5,966 million euros (6,814 million dollars), up 10.4 percent at constant exchange and 7.5 percent at current exchange rates, while the company said, recurring operating income increased 6 percent to 2,045 million euros (2,335 million dollars) or 34.3 percent of sales. Net profit for the year increased 15 percent to 1,405 million euros (1,604 million dollars).

“This year again, Hermès achieves a remarkable performance, thanks to the talent and incredible commitment displayed by the women and men of Hermès, and confirms the strength of the Group’s growth model,” said Axel Dumas, Executive Chairman of Hermès in a statement.

Hermès records revenues growth across core geographies

The 11 rise in revenues recorded in 2018 in group stores, the company said, was driven by growth in all geographical areas. Hermès continued to open new stores and completes extension work on 20 stores. The company also launched its new digital platform in Europe and in China in October.

Revenues in Asia excluding Japan were up 14 percent driven by strong growth in China and in South Asian countries. Revenues in Japan improved 8 percent, while sales in America increased 12 percent. The company added that sales in Europe excluding France rose 8 percent, driven in particular by the United Kingdom and Italy, while France posted 6 percent growth.

All business lines also recorded growth, with leather goods and saddler sales improving 9 percent, ready-to-wear and accessories division sales up 14 percent, sales of silk and textiles business line increasing by 3 percent and perfumes division witnessing a rise of 9 percent. The watches business line recorded 10 percent growth in sales performance in group’s stores and other Hermès business lines reported 20 percent sales increase.

Hermès further sales that after including the 53 million euros net capital gain on the sale of the former Galleria store premises in Hong Kong, operating income increased 9 percent to 2,098 million euros (2,395.8 million dollars), representing 35.2 percent of sales.