Hermes posts profit growth and plans price rise
Luxury goods firm says 2013 profit margin could be close to record 32%
Hermes is hiking its prices after increases by its rivals such as LVMH’s Louis Vuitton and Kering’s Gucci earlier this year. Photograph: Reuters/Jacky Naegelen
Hermes plans to raise prices next year, partly in response to the rising cost of silks and leather, the French luxury group said today as it posted forecast-beating first-half profits.
Like its peers, Hermes said that as well as countering rising material costs, the move was aimed at mitigating currency fluctuations such as the weak yen compared with the euro.
Hermes said its 2013 recurring operating margin could be close to the 2012 record of 32.1 per cent.– (Reuters)