Good results for Hermes7 February 2011
French luxury goods company Hermes International have reported a 25% jump in sales last year and raised its profit guidance, further illustrating the industry's strong end-of-the-year performance.
Sales of the famous silk scarf, saddle and leather goods fashion house were Euro 2.4 billion over last year, up 25% from Euro1.91 billion a year earlier, boosted by fast growth in all regions. The figure was slightly above analysts' estimates of Euro2.36 billion.
Hermes has been the target of larger rival LVMH. They have acquired a stake of over 20% and although LVMH have said that they do not plan to take over Hermes, Hermes says that the attention from LVMH is ‘unwelcome’.
Over 70 family shareholders together own 73% of Hermes and aim to tie up over half of the business in a holding company. The measure would further lock up control over the company, already a limited partnership guaranteeing family heirs control of the business.
Hermes shares have risen 10% over the past six months.