Hermes FY profit rises on sales growth in Asia

Hermes

French luxury brand Hermes has posted a 25% surge in full-year profit, driven by increased demand in Asia.

Net income soared to €740 million ($954.7 million), up from €594 million the prior year, with revenues up 22.6% at constant exchange rates to €3.48 billion.

Sales at the group’s own stores grew 23% at current exchange rates and by 16% at constant exchange rates. In 2012, Hermes opened two new branches and renovated or enlarged 12 others.

Growth was also driven by strong demand in non-Japan Asia, where sales surged 25%. Japan recorded 7% growth to €545 million after a “relatively stable year” in 2011.

In Europe, sales rose 15% after a “positive contribution” from nearly all countries. The Americas posted 14% growth to reach €184.6 million, boosted by the gradual expansion of its network.

The company’s ready-to-wear and accessories division saw sales jump 22% to €1.04 billion. New formats and the use of new colors and materials helped silk and textiles sales rise 16%. The leather goods and saddlery division posted growth of 12%.

Looking ahead, Hermes said it will continue to follow its long-term strategy based on “creativity, maintaining control over its know-how, expanding its distribution network, strengthening its production capacity, and protecting its sources of supply”.

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