HERMES
Strong sales growth in 2013: +13% at constant exchange rates
13 February 2014
In 2013, the group's consolidated revenue totalled €3,754.8 million, a 13.0% rise at constant exchange rates. After adjusting for the negative impact of currencies, primarily due to the weakness of the Yen, the rise is 7.8%.
In the fourth quarter, growth remained strong (+11.0% at constant exchange rates) despite a particularly high basis for comparison.
Sales by region and sector
(at constant exchange rates unless otherwise indicated)
The annual revenue generated by the group's own stores rose by 13%. Hermès continued to qualitatively expand its distribution network with the launch of boutiques in Beverly Hills (USA), Ningbo (China) and Nagoya Mitsukoshi (Japan). In Italy, Hermès successfully opened its new store in Milan, which is located on the famous Via Montenapoleone. At the end of the year, the outlet in Hangzhou, China, was opened following extension and renovation.
All regions contributed to the growth
Non-Japan Asia (+16%) and America (+14%) were particularly dynamic. Japan (+7%) posted a very good performance. Europe (+12%) saw sustained activity in all countries despite a difficult financial climate.
Ambitious designs stimulating growth in all sectors
Leather Goods and Saddlery (+9%), for which demand remains very high, is continuing to expand its collections and develop its production capacities, particularly with the increased activity of the two workshops that opened in Isère and Charente in 2012 and plans to create two new premises in the Franche-Comté region.
The Ready-to-wear and Accessories Division (+18%) benefited from the dynamism in accessories and the latest ready-to-wear collections, which celebrated this year's theme "A sporting life!"
The Silk and Textiles (+12%) sector posted a good performance through the extended offering of new materials and new formats.
Perfumes (+15%) confirmed their momentum in 2013. The new fragrance for women Jour d'Hermès was warmly welcomed whilst Terre d'Hermès continued its growth and established its position as a classic male fragrance.
Following an exceptional year in 2012, Watches (+1%) were affected by the slowdown in the Chinese market.
Other Hermès sectors showed remarkable progression (+37%). Jewellery made a significant contribution to this dynamic with the success of the latest collections in gold.
Significant events
Over the past year, currency fluctuations have had a negative impact of €183 million on revenue.
During the fourth quarter, Hermès International bought back 10.746 shares for €3 million outside the liquidity contract.
2013 results target
Results will be published on 20 March 2014. With the dynamic sales at the end of the year, the current operating margin is set to be very slightly above the all-time high achieved in 2012 (32.1%).
Interim dividend
Given the available cash, the Executive Management decided on 12 February to pay an interim dividend of €1.5 per share. The ex-coupon date is set for 25 February and the payment date for 28 February 2014.
2014 outlook
Hermès will continue its long-term strategy based on creativity, fantasy, maintaining control over its know-how, expanding its distribution network, strengthening its production capacity and protecting its supply sources.
In 2014, our company will focus on the themes of metamorphosis, precious materials becoming objects in the skilled hands of artisans, and the objects themselves when buyers bring them to life and enhance their own in the process. Above all it is our company's unwavering determination to reinvent itself and push the limits of excellence that is our hallmark.
INFORMATION BY GEOGRAPHICAL ZONES (1)
| 4th quarter | Evolutions | ||||
| In millions of Euros | 2013 | 2012 | Published | At constant exchange rates | |
| France | 179.5 | 166.8 | 7.6% | 7.6% | |
| Europe (excl. France) | 216.0 | 196.8 | 9.7% | 11.4% | |
| Total Europe | 395.5 | 363.6 | 8.8% | 9.7% | |
| Japan | 133.5 | 163.5 | -18.3% | 4.7% | |
| Asia Pacific (excl. Japan) | 352.6 | 318.7 | 10.7% | 15.7% | |
| Total Asia | 486.2 | 482.2 | 0.8% | 12.0% | |
| Americas | 190.6 | 184.6 | 3.3% | 8.5% | |
| Other | 19.8 | 13.8 | 43.7% | 44.1% | |
| TOTAL | 1,092.0 | 1,044.1 | 4.6% | 11.0% | |
| As of December 31st | Evolutions | ||||
| In millions of Euros | 2013 | 2012 | Published | At constant exchange rates | |
| France | 613.1 | 555.5 | 10.4% | 10.4% | |
| Europe (excl. France) | 737.0 | 661.8 | 11.4% | 12.9% | |
| Total Europe | 1,350.1 | 1,217.3 | 10.9% | 11.7% | |
| Japan | 463.2 | 545.0 | -15.0% | 6.5% | |
| Asia Pacific (excl. Japan) | 1,248.1 | 1,100.3 | 13.4% | 16.4% | |
| Total Asia | 1,711.2 | 1,645.3 | 4.0% | 13.1% | |
| Americas | 627.4 | 568.9 | 10.3% | 14.2% | |
| Other | 66.1 | 52.6 | 25.8% | 26.0% | |
| TOTAL | 3,754.8 | 3,484.1 | 7.8% | 13.0% | |
(1) Sales by destination.
INFORMATION BY SECTORS
| 4th quarter | Evolutions | ||||
| In millions of Euros | 2013 | 2012 | Published | At constant exchange rates | |
| Leathergoods and Saddlery (1) | 470.8 | 472.1 | -0.3% | 7.3% | |
| Ready-to-wear and fashion accessories (2) | 231.0 | 217.7 | 6.1% | 12.4% | |
| Silk and Textiles | 153.1 | 148.2 | 3.3% | 8.9% | |
| Other Hermès sectors (3) | 68.1 | 53.3 | 27.6% | 34.3% | |
| Perfumes | 51.8 | 45.5 | 13.9% | 15.4% | |
| Watches | 49.6 | 52.0 | -4.6% | 0.6% | |
| Tableware | 19.2 | 19.0 | 1.4% | 5.2% | |
| Other products (4) | 48.4 | 36.3 | 33.5% | 37.3% | |
| TOTAL | 1,092.0 | 1,044.1 | 4.6% | 11.0% | |
| As of December 31st | Evolutions | ||||
| In millions of Euros | 2013 | 2012 | Published | At constant exchange rates | |
| Leathergoods and Saddlery (1) | 1,633.8 | 1,596.6 | 2.3% | 8.8% | |
| Ready-to-wear and fashion accessories (2) | 843.1 | 745.6 | 13.1% | 17.9% | |
| Silk and Textiles | 453.9 | 424.6 | 6.9% | 11.5% | |
| Other Hermès sectors (3) | 216.4 | 165.2 | 31.0% | 36.5% | |
| Perfumes | 209.7 | 184.1 | 13.9% | 14.8% | |
| Watches | 167.2 | 172.7 | -3.2% | 1.0% | |
| Tableware | 61.2 | 60.5 | 1.2% | 4.4% | |
| Other products (4) | 169.6 | 134.9 | 25.7% | 29.0% | |
| TOTAL | 3,754.8 | 3,484.1 | 7.8% | 13.0% | |
(1) Leathergoods & Saddlery include bags & luggages, horse riding, memory holders and small leather goods.
(2) Ready-to-wear and fashion accessories include ready-to-wear, men and women, belts, accessories jewellery, gloves, hats and Hermès shoes.
(3) Other Hermès sectors include jewellery and products of the art of living department.
(4) Other products include John Lobb shoes as well as production activities realized for third parties (textile printing, perfumes, tanning,.).
REMINDER OF PREVIOUS PUBLICATIONS
INFORMATION BY GEOGRAPHICAL ZONES
| 2013 | 2012 | |||||||||||
| In millions of Euros | Q1 report | Q2 report | S1 report | Q3 report | YTD 09/13 | Q1 report | Q2 report | S1 report | Q3 report | YTD 09/12 | ||
| France | 137.9 | 151.3 | 289.2 | 144.4 | 433.6 | 123.6 | 132.2 | 255.8 | 132.9 | 388.7 | ||
| Europe (excl. France) | 168.2 | 178.7 | 346.9 | 174.1 | 521.0 | 150.6 | 155.8 | 306.4 | 158.6 | 465.0 | ||
| Total Europe | 306.1 | 330.0 | 636.1 | 318.5 | 954.6 | 274.2 | 288.0 | 562.2 | 291.5 | 853.7 | ||
| Japan | 110.3 | 111.1 | 221.4 | 108.2 | 329.6 | 119.9 | 127.0 | 246.9 | 134.7 | 381.5 | ||
| Asia Pacific (excl. Japan) | 292.0 | 299.2 | 591.2 | 304.2 | 895.4 | 248.1 | 258.8 | 506.8 | 274.8 | 781.6 | ||
| Total Asia | 402.3 | 410.3 | 812.6 | 412.4 | 1,225.1 | 368.0 | 385.7 | 753.7 | 409.5 | 1,163.2 | ||
| Americas | 133.0 | 153.1 | 286.1 | 150.7 | 436.7 | 120.6 | 128.2 | 248.8 | 135.5 | 384.3 | ||
| Other | 15.4 | 17.1 | 32.4 | 13.9 | 46.3 | 14.1 | 12.5 | 26.6 | 12.2 | 38.8 | ||
| TOTAL | 856.8 | 910.4 | 1,767.2 | 895.5 | 2,662.7 | 776.9 | 814.5 | 1,591.4 | 848.6 | 2,440.0 |
INFORMATION BY SECTORS
| 2013 | 2012 | |||||||||||
| In millions of Euros | Q1 report | Q2 report | S1 report | Q3 report | YTD 09/13 | Q1 report | Q2 report | S1 report | Q3 report | YTD 09/12 | ||
| Leathergoods and Saddlery | 372.5 | 407.4 | 779.9 | 383.1 | 1,163.0 | 358.4 | 381.0 | 739.5 | 385.0 | 1,124.5 | ||
| Ready-to-wear and fashion accessories | 187.8 | 207.8 | 395.6 | 216.4 | 612.0 | 161.5 | 173.3 | 334.7 | 193.2 | 527.9 | ||
| Silk and Textiles | 105.0 | 96.6 | 201.7 | 99.1 | 300.8 | 92.7 | 90.3 | 182.9 | 93.4 | 276.3 | ||
| Other Hermès sectors | 46.6 | 48.1 | 94.7 | 53.6 | 148.3 | 31.7 | 37.7 | 69.5 | 42.4 | 111.8 | ||
| Perfumes | 57.8 | 48.9 | 106.7 | 51.1 | 157.8 | 49.1 | 40.3 | 89.4 | 49.2 | 138.6 | ||
| Watches | 34.5 | 40.4 | 74.9 | 42.7 | 117.6 | 37.1 | 40.7 | 77.8 | 42.9 | 120.8 | ||
| Tableware | 13.5 | 15.4 | 28.9 | 13.0 | 41.9 | 14,0 | 14.1 | 28.0 | 13.4 | 41.5 | ||
| Other products | 39.1 | 45.7 | 84.7 | 36.4 | 121.1 | 32.4 | 37.1 | 69.5 | 29.1 | 98.6 | ||
| TOTAL | 856.8 | 910.4 | 1,767.2 | 895.5 | 2,662.7 | 776.9 | 814.5 | 1,591.4 | 848.6 | 2,440.0 |
