Hermès International : Turnover as at end of September 2012

HERMES

Third quarter financial report (nine months ended 30 September 2012)

Robust sales momentum in the third quarter (+24.2%)

Paris, 8 November 2012

The group's consolidated revenue for the nine months ended 30 September totalled €2,440 million, a rise of 22.7% at current exchange rates (and of 15.5% % at constant exchange rates).

In the third quarter, sales grew by 24.2% at current exchange rates and by 15.7% at constant exchange rates. Sales growth for the group's own stores remained extremely robust (up 16.8% at constant exchange rates), despite a high basis of comparison.

Sales for the first nine months by sector and region
(at constant exchange rates, unless otherwise indicated)

Sales expanded across all regions in the nine months to 30 September 2012:

• Non-Japan Asia (+24%, driven by China, Singapore and Hong Kong) and Japan (+4%); 

• France (+13%) and the Rest of Europe (+18%); 

• The Americas (+11%), in spite of an exceptionally high basis of comparison in 2011 (+30%).  

All sectors delivered a handsome performance owing to the new creations and excellence of craftsmanship:

• Leather Goods and Saddlery (+11%), where the group continues to invest in expanding production capacity to meet steadily rising demand;  

• Ready-to-wear and Accessories (+21%), underpinned by the creativity of the latest ready-to-wear and fashion accessories collections;  

• Silk and Textiles (+14%), propelled by the success of new materials and new formats ;  

• Perfumes (+13%), owing to the success of the great classic Terre d'Hermès and to the launch of Voyage d'Hermès perfume;  

• Watches (+16%), reflecting the success of the strategy to expand into mechanical and manufacture calibre watches;  

• Other Hermès sectors, with an exceptional rise of 52% owing to the uniqueness of Hermès jewellery and the development of the Art of Living collections.  

Significant events during the third quarter

At the end of September, currency fluctuations generated a positive impact of €143 million on sales.

Hermès International did not buy back any of its own shares during the third quarter. At 30 September, it held 1 456 362 shares for a total of €310 million, excluding shares traded under the liquidity contract.

Outlook

If the current trend persists, the target for consolidated annual sales growth at constant exchange rates could exceed 13%. The current operating margin is expected to be between the 2010 level and the record high achieved in 2011.

During the fourth quarter, Hermès will continue to follow its strategy based on expanding its distribution network, strengthening its production capacity and safeguarding its sources of supply.

The theme for 2012, "The Gift of Time", highlights the excellence, passion and quality of the craftsman. Without time, nothing lasting or beautiful could be brought into being.

INFORMATION BY GEOGRAPHICAL ZONES (1)

(1) Sales by destination.

INFORMATION BY SECTORS

(1) Leathergoods & Saddlery include bags & luggages, horse riding, diaries 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 (1)

(1) Sales by destination.

INFORMATION BY SECTORS