In case anyone is interested, here are some facts and figures from Hermès for the first half of 2007. Taken from the financial information of Hermès International.
CONSOLIDATED NET INCOME GROWTH OF 9% DURING THE FIRST HALF.
Sales higher on all continents
Hermès Group sales amounted to 721.1m in the first half of 2007. At constant exchange rates, sales growth was 8.2% following a 10% jump in the second quarter. The extremely strong currency impact held down growth at current exchange rates to 2.9%.
The distribution network expanded with the opening of four new branches: in Osaka (Japan) Hangzhou (China) New York Wall Street (USA) and Seoul (Korea).
At constant exchange rates, sales growth during the first half was particularly robust in France (10%), in the rest of Europe (12%), in the Americas (9%) and in Asia excluding Japan (12.5%).
In Japan, in a lacklustre climate, sales advanced by 2% following a 5% increase in the second quarter.
All segments delivered growth
Growth was fuelled by Silks & Textiles (up 14%), Tableware (20%) and Other Hermès sectors" (18%), driven by Jewellery and Art of Living.
Sales of Ready-to-wear and Accessories rose by 11% and Perfumes delivered a robust 12% increase, after the launch of Terre d'Hermès during the first half of 2006.
Leather Goods and Saddlery expanded 4%, with an 11% jump in leather bags, while Watches moved up 5%.
Net income increased by 9%
Operating income amounted to 185.8m from 184.6m in the first half of 2006. It reflects continued significant advertising efforts and a 7.2m gain on the sale of the remaining Leica Camera AG convertible bonds, which were fully impaired in 2006.
Consolidated net income was 128.1m compared with 117.5m in the first half of 2006,up 9 %. The net margin was 17.8 % compared with 16.8 % as at end of June 2006.
Currency fluctuations produced an appreciable impact on first half results. At constant exchange rates, operating income would have advanced by 11% and net income by 20%.
During the first half of 2007, investments were dedicated mainly to renovating and expanding the distribution network. They amounted to 48m. Under its partnership with the Sandoz Family Foundation, Hermès International further built up its stake in Vaucher Manufacture Fleurier, which specialises in the design, production and assembly of fine mechanical watch movements. The Group also bought back 73m of its own shares in view of cancelling them.
Operating cash flow rose 2.1% to 150.3m from 147.2m in the first half of 2006.
Outlook for the second half
During the second half, Hermès will continue to invest in expanding its distribution network, with some twelve branches to be opened or renovated, and to enhance its production capacity. Major projects include expanding the Faubourg Saint-Honoré store, renovating the Lyon store and continued development in China with a new location in Chengdu.
In keeping with its strategy of controlling its know-how, in July, Hermès acquired the remaining shares that it did not own in Soficuir International, a company specialising in supplying and tanning precious skins, thereby becoming the sole shareholder in this company.
In 2007 the year dedicated to Dance Hermès will continue its strategy based on creativity, product quality, know-how and the spirit of craftsmanship.
CONSOLIDATED NET INCOME GROWTH OF 9% DURING THE FIRST HALF.
Sales higher on all continents
Hermès Group sales amounted to 721.1m in the first half of 2007. At constant exchange rates, sales growth was 8.2% following a 10% jump in the second quarter. The extremely strong currency impact held down growth at current exchange rates to 2.9%.
The distribution network expanded with the opening of four new branches: in Osaka (Japan) Hangzhou (China) New York Wall Street (USA) and Seoul (Korea).
At constant exchange rates, sales growth during the first half was particularly robust in France (10%), in the rest of Europe (12%), in the Americas (9%) and in Asia excluding Japan (12.5%).
In Japan, in a lacklustre climate, sales advanced by 2% following a 5% increase in the second quarter.
All segments delivered growth
Growth was fuelled by Silks & Textiles (up 14%), Tableware (20%) and Other Hermès sectors" (18%), driven by Jewellery and Art of Living.
Sales of Ready-to-wear and Accessories rose by 11% and Perfumes delivered a robust 12% increase, after the launch of Terre d'Hermès during the first half of 2006.
Leather Goods and Saddlery expanded 4%, with an 11% jump in leather bags, while Watches moved up 5%.
Net income increased by 9%
Operating income amounted to 185.8m from 184.6m in the first half of 2006. It reflects continued significant advertising efforts and a 7.2m gain on the sale of the remaining Leica Camera AG convertible bonds, which were fully impaired in 2006.
Consolidated net income was 128.1m compared with 117.5m in the first half of 2006,up 9 %. The net margin was 17.8 % compared with 16.8 % as at end of June 2006.
Currency fluctuations produced an appreciable impact on first half results. At constant exchange rates, operating income would have advanced by 11% and net income by 20%.
During the first half of 2007, investments were dedicated mainly to renovating and expanding the distribution network. They amounted to 48m. Under its partnership with the Sandoz Family Foundation, Hermès International further built up its stake in Vaucher Manufacture Fleurier, which specialises in the design, production and assembly of fine mechanical watch movements. The Group also bought back 73m of its own shares in view of cancelling them.
Operating cash flow rose 2.1% to 150.3m from 147.2m in the first half of 2006.
Outlook for the second half
During the second half, Hermès will continue to invest in expanding its distribution network, with some twelve branches to be opened or renovated, and to enhance its production capacity. Major projects include expanding the Faubourg Saint-Honoré store, renovating the Lyon store and continued development in China with a new location in Chengdu.
In keeping with its strategy of controlling its know-how, in July, Hermès acquired the remaining shares that it did not own in Soficuir International, a company specialising in supplying and tanning precious skins, thereby becoming the sole shareholder in this company.
In 2007 the year dedicated to Dance Hermès will continue its strategy based on creativity, product quality, know-how and the spirit of craftsmanship.
I'm glad to see more and more people discover Hermessences, they are truly unique for some reason I have still yet to learn.
.
