Hermes International SCA is presented in Europe, America, and Asia through its exclusive retail shops. The company operates through numerous subsidiaries, such as Castille Investissements, Maroquinerie des Ardennes, Holding Textile Hermes, Hermes Canada, Hermes Istanbul, ERM WHG Warenhandels Gmbh and Hermes GmbH, and Manufacture des Haute Maroquinerie. Though profits last year jumped 64% to €5.65 billion from €3.44 billion last year, they were buoyed by a capital gain linked to its decision to relinquish its 23% interest in rival Hermès International SCA to shareholders. Overall, business is improving, the company said. Fourth-quarter sales grew 10% as the U.S. market gained pace and as European sales improved late in the period.
Hermes achieved its 2014 sales target and is looking to expand in Germany through bigger stores in cities where it already has shops, an executive was quoted as saying by a German paper.
However, Hermes expects sales growth to slow in this year, a sign that weakness in China’s market for high-end goods is now hitting the pinnacle of the luxury business. It expects revenue to grow 8%, decelerating from an 11% increase last year, citing “economic, geopolitical and monetary uncertainties over the world.” Year-on-year, sales in Asia outside Japan grew 8.9% in the fourth quarter. Watch sales, which fell globally by 13% at constant exchange rates in the quarter, were particularly hard hit in China, the company said. Not only Hermes sale has dropped in China, other luxury goods and premium liquor and spirits have also affected from the crack down in Beijing on corruption and luxury spending among public officials.
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