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Hermès enjoys luxury of stronghold in Asian markets Monday, 1st October 2012
Photo credit: Hermès
“We have not seen any inflexion of any kind in our sales.” Hermès chief executive Patrick Thomas told Reuters on Sunday: “Therefore our targets for the year remain unchanged.”
With the global luxury market becoming increasingly polarised, healthy sales and a strong presence in emerging markets have shown Hermès to be resilient against deteriorating trading conditions elsewhere. As an economic slowdown in China rocks many premium brands’ reliance on the country, Thomas told Reuters that Hermès is ready to move with the times of the world’s developing luxury markets.
"Chinese customers are becoming increasingly sophisticated very fast," Thomas said.
"Before, they wanted ostentatious items, now they want quality objects. The future of the luxury market lies in products which demonstrate genuine craftsmanship."
Thomas was speaking to Reuters following the brand's fashion show held in the Jeu de Paume museum in Paris.
Hermes announces CEO changes Tuesday, 29th May 2012
Photo credit: Hermes Spring Summer 2012 campaign
The historic French luxury group has announced Axel Dumas will become joint chief executive of the company in June 2013, working alongside current CEO Patrick Thomas.
Hermes continues to soar thanks to Asia sales Thursday, 3rd May 2012
Photo credit: My-Retail Media
Hermes defied turbulent conditions in the Eurozone to deliver a 17.6 per cent growth in sales for its first quarter.
The iconic French brand saw strong growth in the Asia Pacific region, reporting a 22 per cent rise in sales, excluding Japan, for the first quarter. Hermes Chief executive Patrick Thomas told Reuters that he saw no slowdown in demand for luxury goods in China, a market that continues to snap up the heritage label’s products.
European sales for the quarter remained strong, up 27 per cent in organic terms, but Thomas attributed this growth to brand loyalty and Asian tourism, and suggested that the economic crisis in the Eurozone would begin to take its toll on the figures later in the coming months.
"It is going to be a very difficult year," he said in an interview with Reuters. "The beginning was easy ... but the trend is not good."
Despite a 17.6 per cent growth for the period, Hermes maintained its target of 11 per cent growth overall for 2012, noting that operating margins could be hit by commodity prices in the future.
Hermes defy the economic climate with increased profits and sales Friday, 23rd March 2012
Photo Credit: Hermes Spring/Summer 2012 Ad Campaign
The firm, renowned for its Birkin bags and scarfs, have said that net profits increased 41 per cent to £495 million in 2011 from a year ago. Its shares in Paris also rose 2.7 per cent.
The fashion house, which was founded in 1837 and is still run by the family, was recently subject to an uncomfortable takeover battle with LVMH, which resulted in losing 22 per cent to the luxury brand conglomerate.
Hermes chief executive Patrick Thomas told French Radio: "I don't say that it's a bad decision, but it's also my job to protect this house."
With the influx in custom, Hermes now plans to open two more leather factories in France to cope with the demand.
Hermès to release range of saris exclusively in new Indian stores Tuesday, 11th October 2011
Just as the old ‘When in Rome’ saying goes, French luxury fashion house Hermès has announced it is creating a range of special edition saris to be sold in the firm’s new Indian stores.
As the company expands in the East, the brand is set to make an entrance with the range, which features 27 sari designs made in special silks inspired by the firm’s scarf patterns.
‘This is the perfect way for Hermès to make its presence in India’ Patrick Thomas, the company’s chief executive officer, said, adding that, ‘It is symbolic of the relationship of the brand to India, to be Indian in India and to share some activities with our customers’
Expanding into a brand new design specification hasn’t been all smooth sailing for Hermès, however, who were faced with a bit of a logistical problem when it came to scaling up their historic scarf designs:
‘It is the first time printing has been done over fabric measuring 5.5 meters [18 feet] long by our ateliers of Lyon. The sari is a very sensual object, particularly in twill silk or mousseline changeante, when it reflects the light. It is very feminine and elegant,’ said Bertrand Michaud, regional managing director for India, Middle East and Southeast Asia.
Hermes sales buoyant amidst sinking markets Monday, 3rd October 2011
Luxury French goods maker Hermès has seen no sign of a cut in spending as affluent shoppers tighten their purse strings.
Speaking at the brand’s show at Paris Fashion Week yesterday, Hermès chief executive Patrick Thomas said: “For the moment, there is no impact on our sales.”
According to Thomas there has been little change so far in the purchasing power of its luxury consumers, but this hasn’t stopped the company from exercising caution, as the executive added: “The fact that we see nothing today, does not mean that we will not see anything tomorrow,” said Thomas.
“When there are moments of macroeconomic concern, they always tend to affect our markets.”
Hermes rises 21% for Q2 Wednesday, 20th July 2011
Luxury brand Hermes announces strong results for second quarter as consumers get a taste for the good life.
Revenues for the French fashion house increased by over a fifth to EUR 1.3 billion as the firm boosted its sales overseas.
According to Hermes the group were also able to strengthen profits through the sale of their stake in Jean-Paul Gaultier’s fashion label.
Sales grew 31 percent in the quarter on the back of Hermes’ spring-summer fashion accessories and ready to wear collections. Watches and jewellery saw ‘buoyant’ sales, with both categories up 30 percent.
However, Hermes CEO Patrick Thomas raised concerns that the business’ revenues could be hit by prevailing uncertain global conditions: Thomas has said: “Our business is highly psychological and when people feel there is a bad mood internationally, there is instability, there is a threat on the economy, then people buy less.”
Even with an air of caution, Hermes managed to report sales across the US and China increased by 34 percent and 30 percent respectively, while Europe saw a 20 percent rise.
Hermes defiant in face of LVMH acquisitions with 25% stake in Swiss Vaucher on the horizon Tuesday, 8th March 2011
Hermes International CEO is reported to be considering an increase in their stake of Vaucher Manufacture Fleurier.
Speaking after the Hermes finance reports were released last week, chief executive Patrick Thomas stated that the family owned French luxury group plan to reinforce their “savoir faire” attitude to expansion and are to consider increasing their hold of the Swiss manufacturing company.
After much speculation over an LVMH acquisition of Hermes last year, the luxury leather goods makers seem determined to strengthen their wider business through bolt-ons and joint ventures, with Thomas citing their “war chest” of EUR 950m in cash available for acquisitions as a “clear incentive”.