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Hermes annual net profit jumps 13 percent

By Prachi Singh

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Management

Net profit at the French luxury goods player Hermes reached 1.1 billion euros (1.2 billion dollars) in 2016, a 13 percent increase over the year ago period, AFP reports. The company said that this jump in net profit can be attributed a 14 percent increase in its leather goods and saddlery segment. The company’s revenues surpassed a 5 billion euro mark (5.3 billion dollars).

"Development was supported by the sustained pace of deliveries and production, gaining from the capacities of the three new sites in France,” the company stated in a statement announcing the annual results, added the report.

Hermes posts like-for-like sales rise of 7.5 percent

Like-for-like sales increased 7.5 percent to 5.2 billion euros (5.6 billion dollars), while operating income grew 10 percent to 1.7 billion euros (1.8 billion dollars). The group said, it reached an operating margin of 32.6 percent, due to a favourable impact of foreign exchange hedges.

Product segment-wise, while perfume sales rose nine percent, apparel sales were flat on last year and and watch sales slowed by 3 percent. However, the company reported rise in sales in all geographical regions.

The company has announced a dividend payment of 3.75 euros (4.04 dollars) per share, up from 3.35 euros (3.61 dollars) last year.

Summing up

Net profit jumps 1.1 bn euros
Like-for-like sales up 5.2 bn euros

Picture:Facebook/Hermes

Hermès