Hermes net profits soar 13 percent to €973 million

Hermes net profits soar 13 percent to €973 million

Hermes reported that net profit rose more than 13% to €973 million ($1.1 billion) after it experienced sales of €4.8 billion thanks to a buoyant Japanese market. However, this was slightly below average expectations of €998 million (which was impacted by higher taxes). On a more positive note, Hermes’ operating profit also soared 19% to €1.5 billion.

The company’s Chairman, Axel Dumas, stated in February that Hermes had been ‘strongly impacted’ by the deadly Paris attacks in November 2015 and the company was eyeing the effects of currency changes, lowered oil prices and the slowing Chinese economy amongst other factors.

Hermes gave a modest outlook for its 2016 sales growth prospects expecting that it would be less than the 8% revenue growth at constant exchange rates. This forecast was based on the ‘economic, geopolitical and monetary uncertainties around the world’.

Hermes net profits soar 13 percent to €973 million