Hermès fourth quarter results
Le 19-02-2018

In 2017, the Group’s consolidated revenues amounted to 5,549 million Euro, up +9% at constant exchange rates.

After adjustment for the negative currency effect resulting from the year-end strengthening of the Euro, the increase was +7% at current exchange rates. This growth is particularly healthy as it is mainly based on an increase in volumes.

Growth was sustained in the fourth quarter (+5% at constant exchange rates), driven by all the geographical areas.

The significant rise in revenues recorded in 2017 in Group stores (+9%) was driven by growth in all the geographical areas. Hermès continued to improve the quality of its distribution network, completing renovation and extension work on almost twenty stores.

Hermès deployed its new website in Canada and then the USA. It will be launched in Europe in the first half of 2018, then in China at the end of the year.

Asia excluding Japan (+11%) pursued its upward curve with a positive outlook in mainland China and in South Asian countries. The context is improving in Hong Kong and Macao. The region particularly extended and renovated the Sogo Fuxing store in Taiwan, Kowloon Elements in Hong Kong and the Kuala Lumpur store in Malaysia.

Japan (+4%), a high comparison basis, recorded a sustained increase thanks to its selective distribution network.

America (+8%) achieved a good year in particular in the United States. The stores in Toronto and Palm Beach were renovated and extended at the end of the year. Brazil benefited from the opening of the new São Paulo Iguatemi store in June.

Europe (+8%) confirmed an outstanding performance in the Group stores. This was particularly due to the success of the stores opened or extended on Sloane Street in London, in Munich and Copenhagen. France in particular (+5%), whose store on avenue George V is being renovated, performed well.

All sectors recorded growth, with a remarkable performance of the Ready-to-Wear and Accessories, Perfumes and Other sectors.

Growth in Leather Goods and Saddlery (+10%) is in line with the annual growth target in production capacities, in order to meet the strong demand for both iconic bags and the other models such as the Constance, Halzan, Lindy and Verrou bags. Development projects continue with the Maroquinerie de l’Allan, and the launch of the Manufactures de Guyenne and de Montereau which are likely to be completed by the year 2020. The Ready-to-Wear and Accessories division (+9%) confirmed its great performance, driven by the success of the ready-to-wear collections, fashion accessories and particularly shoes. The Silk and Textiles business line (+6%), gaining from sustained demand, the diversity of materials and the wealth of creations, pursued its growth. The Perfumes division (+10%) posted strong growth, particularly due to the successful launch of Twilly d’Hermès. The Watches business line (+1%) recorded a slight increase, with good sales in Group stores. The watches offer presented for the first time at the Geneva exhibition has been very well received. Other Hermès business lines (+11%) which encompass Jewellery, Art of Living and Hermès Table Arts, continued their development.

Given the available cash, on 7 February 2018, Management decided to pay an interim dividend of 1.5 Euro per share.

In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the Group confirms an ambitious goal for revenue growth at constant exchange rates.

Fédération de l'industrie horlogère suisse


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