HERMES INTL : Hermès International : 2015 Sales

HERMES

Hermès pursues solid growth in 2015
Sales rose +18% at current exchange rates and +8% at constant exchange rates

Paris, 10 February 2016

The Group's consolidated revenues amounted to €4,841 million in 2015, up +18%. At constant exchange rates, growth was +8%, in a challenging environment.

Growth remained solid in the fourth quarter (+15% at current exchanges rates and +7% at constant exchange rates), despite the impact of the recent events in France and, to a lesser extent, in Europe.
                                                                                                 
Sales by region and by sector
(at comparable exchange rates unless otherwise indicated)

The sustained rise in sales in 2015 in Group stores (+9%) was driven by growth in all the regions, despite a difficult context. Hermès continued to develop and to improve the quality of its distribution network.

Over 2015, all the regions posted growth

• Japan (+18%) confirmed the excellent performance achieved over the first nine months of the year,

• Asia excluding Japan (+5%) improved thanks to sales development in China, despite a difficult context in Hong Kong and Macao,

• America (+7%) pursued its growth, in spite of a contrasting environment and a high comparison basis. At the end of the year, a new flagship store opened in Miami and the Houston and Dallas stores were renovated and extended,

• Europe (+9%) performed well in the Group's stores, particularly with the renovation and extension of the Bond Street store in London and the Gum store in Moscow. France (+6%) fared remarkably well, despite the negative impact of year-end events.

The sectors confirmed their development thanks to ambitious creations

Growth in Leather Goods and Saddlery (+13%) was driven by sustained demand and the increase in production capacities at the two new sites in Isère and Charente, and the new workshop in Héricourt. Investments for a second site in Franche-Comté continue.

The Ready-to-wear and Accessories division (+8%) benefitted from the success of the latest ready-to-wear collections, especially that of Nadège Vanhee-Cybulski's first collections, and the dynamic fashion accessories sector, particularly shoes.

The Silk and Textiles sector (-1%), which was hard hit by the year-end events in France, suffered from slowing sales in Greater China but continued to develop in the other regions.

The Perfumes division (+3%) pursued its development thanks to the success of Terre d'Hermès and the new additions to the Jardin et Hermessence collections. For memory, the 2014 comparative included the launches of Jour d'Hermès Absolu and Terre d'Hermès Eau très fraiche.

Watches, which remained stable, continue to be penalized by wholesale business in a still challenging market, particularly in Asia excluding Japan.

Other Hermès sectors posted solid growth (+9%), due largely to the success of Gold Jewellery and development of the Home universe.

Highlights

At the end of December, currency fluctuations represent a positive impact of €389 million on revenues.

During 2015, Hermès International redeemed 10,539 shares for €3.5 million, excluding transactions completed within the framework of the liquidity contract.

2015 target results

The annual results will be published on 23 March 2016. For the full year 2015, operational profitability should be close to the 2014 figure (31.5%), despite the diluting impact of currency fluctuations.

Interim dividends

Given the available cash flow, the Executive Management decided on 9 February to pay an interim dividend of €1.50 per share. The ex-coupon date is set for 24 February and the payment date for 26 February 2016.

Outlook

Thanks to the success of its unique business model, Hermès will continue its long-term development strategy based on creativity, maintaining control over know-how and a singular communication.

Due to the economic, geopolitical and monetary uncertainties around the world, sales growth in 2016 could be below the medium-term goal of 8% revenue growth at constant exchange rates.

In 2016, Hermès will celebrate "nature at a gallop". Through horses, its very first customer, Hermès has developed a genuine and profound bond with nature, built on inspiration, admiration and respect. Nature inspires us by its vitality and the dazzling beauty of all the precious creations it offers, for which we will be eternally grateful.

The press release on revenues at the end of December 2015 is available on the Group's website: http://finance.hermes.com.

Coming events:

• 23 March 2016: publication of the 2015 Results
• 28 April 2016: publication of Revenues Q1 2016
• 31 May 2016: General Meeting of Shareholders

INFORMATION BY GEOGRAPHICAL ZONE (1)

(1) Sales by destination.

INFORMATION BY SECTOR

(1) The "Leather Goods and Saddlery" business line includes bags, riding, diaries and small leather goods.
(2) The "Ready-to-wear and Accessories" business line includes Hermès Ready-to-wear for men and women, belts, costume jewellery, gloves, hats and shoes.
(3) The "Other Hermès business lines" include Jewellery and Hermès home products (Art of Living and Hermès Tableware).
(4) The "Other products" include the production activities carried out on behalf of non-group brands (textile printing, perfumes, tanning.), as well as the John Lobb, Saint-Louis, Puiforcat and Shang Xia products.

REMINDER OF PREVIOUS PUBLICATIONS

INFORMATION BY GEOGRAPHICAL ZONE

INFORMATION BY SECTOR