Luxury goods defy the recession as Hermes International reports profits leap
Hermes International, the maker of the Birkin bag, silk ties and perfumes beloved by Victoria Beckham and Kate Moss, today reported a leap in profits as luxury goods continued to defy recession.
Hermes posted a 44% rise in full-year profit, boosted by tourist shoppers in London and across the continent with buoyant sales also seen in Asia. It said its profit margin reached its highest level since its 1993 stock market listing.
The maker of 10,000leather handbags and silk scarves, a favourite of Victoria Beckham and Kate Moss said "In 2011, Hermes will pursue its investments in developing its distribution network with the opening of 13 branches".
Operating profit rose to 668 million ($931.7 million) from 463 million in 2009, the French luxury net profit rose 46% to 422 million.
Last month, the group said it was targeting sales growth of 8-10% for 2011 with CEO Patrick Thomas adding "This performance reflects the quality of our corporate model and the efficiency of our staff who implement it".
The results come two days before the group is due to present the first womenswear collection created by Christophe Lemaire, the former Lacoste creative designer who replaced Jean-Paul Gaultier last year.
The show will take place in Hermes' new shop dedicated to homeware on Paris's left bank.
