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Hermes delivers record 2016 profit margin
[PARIS] French luxury goods group Hermes posted on Wednesday a 13 per cent increase in 2016 net profit, providing further evidence of a broader recovery in the luxury goods industry, and reported a record operating profit margin.
Hermes, known for its US$10,000 Birkin bags and US$400 printed silk scarves, said its operating margin had reached a record 32.6 per cent of sales against 31.8 per cent in 2015, while the company also increased its dividend by 12 per cent.
Hermes said it was keeping an "ambitious" medium-term goal for revenue growth at constant exchange rates, despite growing economic and geopolitical uncertainties around the world.