Hermès fashions a margins record
Selling bull-calfskin leather handbags and expensive silk scarves has never been so profitable.
The French luxury brand Hermès has reported forecast-beating results for the final quarter of last year, and said its operating margin is expected to be slightly above its all-time high of 31.2 per cent achieved in 2011, putting the group at its most profitable.
The Paris-based fashion house, which is famous for its £10,000 Birkin and Kelly handbags, recorded revenues of €3.48bn (£2.9bn) for 2012, a rise of 22.6 per cent. Sales for the fourth quarter came in at €1.04bn, with sales growth at 18.5 per cent, boosted by demand in China.
Meanwhile, one of the less expensive luxury brands, the French handbag maker Longchamp, reported sales for 2012 of €454m, up 16 per cent on the previous year.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies