News In 2004, luxury group Hermès recorded an 8.3% increase in turnover (+11.9% at constant exchange rates), to 1.332 billion euros, posting an operating profit of 336.7 million euros (+1.2%). After taking into account increases in taxation, net profit fell by 3.6% (+15.6% at constant exchange rates), to 210.1 million euros.
Strongly exposed to the weakness of the dollar and currencies tied to it, Hermès nonetheless registered a strong upturn in turnover in the Asia-Pacific region (+22% at constant exchange rates), as well as in America (+21%) and Japan (+10%), the firm’s premier market. By sector of activity, perfumes recorded the best performance (+21% excluding exchange rate effects), followed by bags and luggage (+18%), silk goods (+10%), tableware (+5%) and watches (+4%).
From the latter figure it can be deduced that La Montre Hermès (nearly 8% of group turnover), established on the outskirts of Biel with 85 employees, realised sales in local currencies almost identical to those of 2003, namely around 108 million euros. The number of watches sold remained stable at 124,000 pieces, while their average price increased slightly. Distributed via a network of around 1,000 points of sale (including approximately 250 exclusive Hermès stores) and particularly strong in Asia, watches sales were buoyant in the United States and in a number of European countries, following the example of France.
Director of La Montre Hermès Emmanuel Raffner told Le Temps that the intention today was to "refocus watch activity more on our own stores, particularly in Japan, where watch distribution is experiencing a number of difficulties". In addition to traditional collections, more technical watches – notably the Dressage collection equipped with Vaucher Manufacture movements – are finding favour with the public. This has also been the case with the Arceau model, now available in a mechanical version. (BIPH/Le Temps)
April 12, 2005