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
