Hermès revenues rise 7.8 percent in 2013

REPORT_ The Executive Management of Hermès presented the audited accounts for 2013 to the supervisory board at its meeting on 19 March 2014, reflecting revenue of 3,755 million euros (5,194 million dollars), with an increase of 7.8 percent and 13 percent at constant exchange

rates.

Terre d’Hermès continued its growth however following an exceptional year in 2012, watches with over 1 percent growth were affected by the slowdown in the Chinese market. Other Hermès sectors showed remarkable progression with over 37 percent growth. Operating margin of 32.4 percent was higher than the all-time high achieved in 2012. Operating income rose by 8.9 percent to 1,218 million euros (1,684 million dollars).

After taking into account an increased taxation, particularly in France, the consolidated net income, group’s share, was 790 million euros (1,092 million dollars) up 6.8 percent.

Sales generated by the group’s own stores increased by 13 percent. Hermès continued to qualitatively expand its d istribution network with the launch of two new branches in Ningbo, China, and Nagoya Mitsukoshi, Japan. In the United States, the Beverly Hills store was successfully enlarged and renovated. In Milan, Hermès moved to a new, exclusive location on the famous Via Montenapoleone.

Non-Japan Asia showed growth of over 16 percent and America grew over 14 percent. Growth in Europe was over 12 percent and Japan, over 7 percent. Leather Goods and Saddlery increased over 9 percent, the ready-to-wear and accessories division was up over 18 percent, the silk and textiles sector witnessed growth of over 12 percent. Perfumes division saw over 15 percent rise.

Hermès will continue its long-term strategy based on creativity, maintaining control over its know-how, expanding its distribution network, strengthening its production capacity and protecting its supply sources. A proposal will be submitted to the General Meeting on 3 June 2014 to set the dividend at 2.70 euros (3.73 dollars) per share.