Hermes Released The Complete Annual Report: There Was No Slowdown In The Chinese Market, And The Global Product Price Increased By 3% In 2019.

In March 20th, the French luxury group Herm s announced the complete financial report for the 2018 fiscal year.

Thanks to global business growth and outstanding performance in the Chinese market, group 2018 net profit rose 15% to 1 billion 405 million euros in fiscal year over year.

According to statistics, Chinese consumers contribute 1/3 of the total sales of luxury goods worldwide.

But in recent months, the increasingly intense Sino US trade war and the slowdown in China's economic growth have led investors to worry about the decline in Chinese consumer demand for luxury goods.

Axel Dumas, chief executive of Hermes, said that at present, they have not seen any signs of slowing demand in the Chinese market.

The e-commerce website launched last year has performed well, and there has been no negative change in the sales momentum of Chinese stores.

In 2019, the group will continue to maintain a prudent development strategy, but they are confident of the future development of the brand.

In October 17th last year, Hermes officially launched the brand official e-commerce platform in China.

(see the historical report of "magnificent ambition": Hermes group announces that it will officially push the brand official e-commerce platform in China in October 17th, and net profit will increase by 17% in the first half of this year).

In March 12th, "ornate ambition" reported that Hermes is about to launch its first make-up series in 2020 (see historical report): Hermes has formally announced its beauty make-up and will launch its first make-up series in 2020.

At the same time, Hermes is also expanding its capacity. The new leather workshop Manufacture de l Allan and the workshop in Seloncourt and H e ricourt greatly increased productivity in April last year, and the new workshop in Guyenne and Montereau is expected to be completed in 2020.

In addition, Hermes will also build seventeenth leather workshops in France in Normandy in 2021, which will create 250 jobs.

As the production costs increase, the Hermes products will be raised by 3% in 2019.

In the 12 months ended December 31, 2018, the core financial data of Hermes are as follows:

Sales grew by 7.5% to 5 billion 966 million euros, up 10.4% over the same period.

Operating profit increased 6% to 2 billion 98 million euros, up 1 billion 922 million euros in the same period last year, with a profit margin of 34.3%, still the highest in the industry.

Net profit rose 15% to 1 billion 405 million euros.

By Region:

French sales increased 6.3% to 802 million euros, up 6.3% from the same rate.

Although the business has been affected by the "yellow vest" parade, its performance is still stable.

In November 2018, the three storefront store of George Fifth Avenue, Paris (GeorgeV) was reopened after renovation and expansion.

Europe (excluding France) sales increased by 6% to 1 billion 107 million euros, up 7.5% from the same month, and the UK and Italy grew significantly.

Japan's sales grew 4.4% to 748 million euros, up 7.5% from the same month, and business grew steadily.

Sales in the Asia Pacific region (excluding Japan) grew 10.1% to 2 billion 142 million euros compared to the same period last year, a year-on-year increase of 13.7% from the constant exchange rate, thanks mainly to the strong sales growth in China and East Asian countries.

In 2018, the brand opened a new store in Hongkong, LandmarkPrince, Changsha, Xi'an and Australia Chadstone, and expanded and renovated Shanghai IFC and Marina BaySands in Singapore.

Sales in the Americas increased by 6.3% to 1 billion 59 million euros, up 11.5% over the same period.

In May 2018, thirty-fourth stores in the United States officially opened the Palo Alto in the central area of Silicon Valley.

Sales in other regions increased by 17.7% to 108 million euros, up 17.8% over the same period.

By line:

Leather goods and harness: sales increased by 6.3% to 2 billion 975 million euros, up 9.4% from the same month, accounting for nearly half of the total sales.

Ready-made garments and accessories: sales increased by 10.9% to 1 billion 310 million euros compared to the same period last year, accounting for an increase of 14.1% over the same period, representing the largest increase in all sectors, accounting for more than 20% of total sales.

Silk and textiles: sales increased by 0.5% to 537 million euros, up 3.2% over the same period.

Perfume: sales increased by 8.4% to 312 million euros, up 8.9% over the same period.

Watches: sales increased by 7% to 169 million euros, up 9.9% from the same rate.

Other business lines (including jewellery, Art of Living and Herm s Table Arts): sales increased by 16.3% to 425 million euros compared to the same period, an increase of 19.6% over the same exchange rate.