Hermès posts sales and profit growth in 2019

The Hermès Group’s consolidated revenue amounted to 6,883 million euros (7,493 million dollars) in 2019, up 15 percent at current exchange and 12 percent at constant exchange rates. The company’s recurring operating income increased 13 percent to 2,339 million euros (2,546 million dollars), while net profit reached 1,528 million euros (1,663 million dollars) 22.2 percent of total sales.

Commenting on the full year trading, Axel Dumas, Executive Chairman of Hermès, said in a statement: “Hermès achieved outstanding performances this year, based on a balanced growth in all the business lines and in all geographical areas.”

Highlights of financial performance at Hermès

The revenue generated in 2019 in the group’s stores was up 13 percent driven by growth in all geographical areas. Hermès continued to improve the quality of its distribution network, with both, store openings, renovation and extension completed on almost twenty stores.

The company said, Asia excluding Japan saw growth of 18 percent driven by strong growth in Greater China, despite the impact of events in Hong Kong in the last quarter, and in South Asian countries. The stores in Qingdao in China and Hyundai in Korea were extended and reopened in December, after the Xiamen store in China and Phuket Floresta store in Thailand openings earlier in the year. Sales in Japan increased 8 percent, while sales in America were up 12 percent.

After the recent store openings in New York’s Meatpacking district and in Waikiki in Honolulu, the company’s San Francisco store was extended and reopened in November. Europe excluding France achieved 8 percent sales rise driven by the United Kingdom and Italy. In November, Hermès opened its first store in Warsaw, Poland, a new country for the Group. France also posted 8 percent growth.

Ready-to-wear and accessories division sales improve 17 percent

The company added that all the business lines recorded growth, with outstanding performance of the ready-to-wear & accessories and jewellery divisions. Leather goods and saddlery saw 11 percent growth benefited from sustained demand, both for the re-invented classics and other models such as the Mosaïque, 24/24 or Twins bags. The ready-to-wear and accessories division posted 17 percent increase due to the success of the men’s and women’s ready-to-wear collections, and fashion accessories, particularly shoes. The silk and textiles business line posted 7.5 percent increase.

Sales of perfumes rose 4 percent, driven particularly by the success of Terre d’Hermès and Twilly d’Hermès and by the new variations Un Jardin sur la Lagune and Twilly d’Hermès Eau poivrée. The watches business line saw 12 percent growth. Other Hermès business lines reported 20 percent sales improvement, which encompass jewellery, Art of Living and Hermès Table Arts.

At the general meeting of April 24, 2020, Hermès said, a dividend proposal of 5 euros per share will be made. The 1.50 euros interim dividend to be paid on March 5, 2020 will be deducted from the dividend approved at the general meeting.

Picture:Hermes menswear FW20, backstage by Geordie Wood