Hermes Profit Margins Narrowed, Annual Profit Increased By 6.7%

The French luxury group Herm s International SCA (HRMS.PA) Hermes International announced yesterday that its profit in the 2014 fiscal year achieved 6.7% growth before the opening of the Paris stock market, and distributed a special dividend of 5 euros per share.

The Group recorded a profit of 1 billion 299 million euros in the whole year, slightly below the 1 billion 310 million euros expected by the market, up 6.7% from 1 billion 218 million euros in the 2013 fiscal year.

As a result of exchange rate fluctuations, operating profit fell to 31.5% from the highest level of 32.4% in the previous year.

Net profit increased by 8.7% to 859 million euros compared with the previous year, 790 million euros, and net profit margins remained at 21%.

Herm International s International SCA Hermes International Board recommends a special dividend of 5 euros per share on the basis of an annual dividend of 2.95 euros per year (the annual dividend of 2.70 euros a year).

The group has released 2014 sales figures in mid February: the first time the annual revenue has exceeded 4 billion euro mark, reaching 4 billion 118 million 600 thousand euros, an increase of 9.7% over the previous year of 3 billion 754 million 800 thousand euros, an increase of 11.1% at real exchange rate, far away from its biggest competitor, the world's largest luxury group LVMH Mo t Hennessy Louis Vuitton SA (LVMH.PA) MOET & CHANDON Hennessy LV group.

3.9% annual revenue growth of leather goods sector.

Annual

An increase of 12.7%.

After the exchange rate was removed, the largest market Asia still maintained double-digit growth with a growth rate of 13%. It was not easy to fight against corruption in China and the frequent political movements in Hongkong. Japan's growth rate also increased from 7% to 12.9% in the previous year.

European growth in the second markets slowed to 7%, compared with 12% in the previous year.

The Americas continued to maintain strong growth of over 14%.

The product was dragged down by China's anti-corruption campaign.

The sales volume recorded a year-on-year decline of 10.6%, which is still worse than the 1% growth in the previous year.

The group's most important leather goods and harness department's growth slowed to 8.8% from 15% in the previous year.

Three sectors of clothing and fashion accessories, silk and textiles and fragrances have made progress.

However, in the four quarter, Herm's s International SCA Hermes international revenue growth was worse than market expectations, and for the first time in many years, it lowered its annual growth target, reflecting the fact that Hermes, who has been maintaining top student status in the context of the overall decline of the luxury goods industry, is also unable to withstand a strong blow.

Blame the global economy and geopolitics to suppress luxury consumption. The group now expects revenue growth to be fixed at a fixed rate of 8% in 2015, after a target of 10% over the years. The group also reiterated 10% in November's three quarter earnings report.

Herm s International SCA (HRMS.PA), chief executive officer of Hermes international, Axel Dumas said exchange rate and geopolitical factors forced the group to be cautious, and at present, "the Chinese market is very complex and Europe is also in a state of tension."

At the time of the deadline, Herm s International SCA (HRMS.PA) fell 1.4% to 306.85 euros, and the market value was 32 billion 450 million euros.