Hermes 2021 Profit Soared as Asia Sales Surged

   By Joshua Kirby 
 

Hermes International SCA said Friday that earnings and revenue surged in 2021, with Asia driving growth and Europe recovering from the pandemic.

The French luxury-fashion company made a net profit of 2.45 billion euros ($2.78 billion), rising 77% on year, on revenue that surged to EUR8.98 billion from EUR6.88 billion in 2019, before the pandemic.

Analysts had seen net profit at EUR2.34 billion and revenue at EUR9 billion, according to a FactSet-compiled consensus.

Revenue growth versus 2019 maintained a pace of 33% in the second half as in the first, Hermes said. Asia sales for the year were up by more than half compared with 2019, making it the biggest engine of top-line growth for the company. Total Europe sales returned to growth of 4.3% over the same period, though Hermes's home market in France booked a slight decrease.

Recurring operating profit surged to EUR3.53 billion, representing a major expansion in the operating margin to 39.3% from 34% in 2019.

The company will propose a dividend of EUR8.00 a share for the year at a shareholders' meeting in April. Hermes didn't offer any numerical guidance for 2022, but said it continues to aim for ambitious organic revenue growth for the medium term.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

February 18, 2022 02:40 ET (07:40 GMT)

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