Hermes announces record sales in 2010
French luxury brand Hermes showed Thursday that luxury can prosper even in a time of belt-tightening, announcing record sales in 2010 and increasing expectations of impressive annual results in March.
The group, famous for its leather goods and silk scarves, announced sales totalling 2.4 billion euros ($3.3 billion), up from 1.91 billion euros the previous year, an increase of over 25 percent.
"The group exceeded its sales growth target for the year owing to extremely strong business momentum for the company-owned stores, particularly during the Christmas season," the company said in a statement.
Due to the results growth and a healthy net cash position, the board has decided to pay an interim dividen of one euro per share this month.
"Hermes will continue to invest in expanding its distribution network, with plans to open ten branches," it added.
Global luxury retailer LVMH in December increased its stake in Hermes to more than 20 percent, prompting the descendants of founder Thierry Hermes to set up a holding company structure to thwart any eventual LVMH takeover.
The full company results will be published on March 4.
© 2011 AFP