Hermes Announces Price Hike But Chinese Do Not Care.

March 20, 2019: strong demand for Chinese consumers continues to support double-digit growth in Herm and s International SCA (HRMS.PA) Hermes International Group's annual revenue and profits.

In the Asia Pacific market, which is mainly Chinese consumption (except Japan), 13.1% of the fixed exchange rate growth, the French luxury goods giant earned 15.1% to 1 billion 405 million euros last year, with a net profit of 1 billion 221 million euros in the same period in 2017.

During the reporting period, 34.3% of the operating profit margin dropped slightly by 30 basis points compared with the 34.6% record in 2017, operating profit increased 6.4%, from 1 billion 922 million euros to 2 billion 45 million euros.

If 53 million euros were sold to the stores in Galleria, Hongkong, operating profit increased by 9% to 2 billion 98 million euros last year, such as female 35.2% as a new group record.

Axel Dumas, chief executive of the group, said at its performance meeting Wednesday that the trend of the global luxury industry has not changed at all, and that it is cautious about the current fiscal year, but is optimistic about the long-term growth prospects.

The global protectionist rise policy, which started early last year, has triggered a sharp market turmoil. Investors worry that Chinese consumers who support the luxury sector continue to grow in the past ten years are no longer pursuing high-end consumption due to trade friction, domestic economic slowdown and devaluation of the renminbi.

In the first two weeks of October 2018, luxury stocks plunged more than 10%.

However, along with LVMH SE (MC.PA) Lu weim Xuan, Kering SA (KER.PA) Kai Yun group's three and fourth quarter performance, the growth of the industry weathervane brand Louis Vuitton Louis Weedon and Gucci Gucci brand has not been significantly affected, because the Chinese consumer's domestic consumption is booming, almost completely offset tourism consumption.

However, in the traditional luxury industry, there is also a frustrated person - Prada SpA Prada group, after its five consecutive year of profit decline on Friday, has been completely dropped from the same industry.

In 2018, French luxury group sales recorded a fixed exchange rate growth of 10.4%, the euro increased by 7.5%, from 5 billion 549 million 200 thousand euros to 5 billion 966 million 100 thousand euros, of which, in addition to Japan, the Asia Pacific market increased 10.1% to 2 billion 142 million 400 thousand euros, and in 2017, 1 billion 946 million euros, the market is currently the largest French group market.

In the performance statement, Axel Dumas thanked the men and women of the company for their talents and dedication, confirmed the strength of the group's growth model, and awarded 1000 euros one-time bonus to all employees who were three times below the minimum wage standard.

In 2018, the French group completed the renovation and expansion of 20 Herm S stores and successfully launched the online shopping mall in October.

In the past year, the group has added 800 employees, 500 of which are in France to expand production capacity and cater to the needs of consumers.

By the end of last year, the group had 14284 employees, including 8846 French employees.

At the performance meeting, Axel Dumas said it had to raise its global price by 3% in recent years to respond to the rise in costs, but this data is obviously not worth mentioning to consumers of Herm s.

The French group also said that the two factories of Guyenne and Montereau will be put into operation in 2020, and another Louviers new project is expected to be completed in 2021.

After paying 428 million euro and 521 million euro special interest, Hermes International Group's net cash is still 553 million euros, making the group's total cash increase to 3 billion 465 million euros. During the period, the group spent 59 million euros to buy over 100 thousand shares.

Herm s International SCA (HRMS.PA) opened a high of 1% on Wednesday, and the highest value in early trading was 598.40 euros, which was close to 614.6 euros in June 2018.

Author: Flower broken