Thursday, March 20, 2014

Hermes Hikes Dividend After New Record-High Profit Margin

(Reuters) - France's Hermes (HRMS.PA) hiked its dividend on Thursday after the maker of Birkin handbags and printed silk scarves posted a new rise in profits and record-high operating margin last year.
While a crackdown on corruption in China has dented the sales of other luxury goods such as LVMH's (LVMH.PA) Louis Vuitton and Kering's (PRTP.PA) Gucci products, Hermes has posted resilient growth.
Hermes said in a statement that 2013 operating profit rose 8.9 percent to 1.218 billion euros, while its operating margin reached a new all-time high of 32.4 percent of sales, compared to 32.1 percent in 2012.
Last month, Hermes posted 2013 sales of 3.75 billion euros, up 13 percent at constant exchange rates, outperforming rivals such as LVMH, whose organic fashion and leather sales rose 5 percent during the same period.
Full-year sales rose 16 percent in Asian markets excluding Japan, 14 percent in the Americas and 12 percent in Europe.
Net profit rose 6.8 percent to 790 million euros and the company said it planned to pay a dividend of 2.70 euros a share for 2013, from 2.50 euros for 2012.
Hermes is known for its iconic Kelly and Birkin leather handbags, which cost between 7,000 and 30,000 euros and can take months to obtain in certain colours or types of leather, creating scarcity and a reputation for exclusivity.
Shares in Hermes closed at 237.5 euros on Wednesday and are down 9.9 percent so far this year.
Hermes commands one of the highest ratings among European luxury stocks due to the brand's resilience to swings in demand and expectations that LVMH, its largest external shareholder with a 23.1 percent stake, could make a takeover bid.
(Reporting by Natalie Huet; editing by Mark John)

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REVIEWS

NBC-TV/Today Show
Summer Reading Round-Up


Bringing Home the Birkin
top 10 summer reads!

WATCH THE VIDEO:
http://www.msnbc.msn.com/id/21134540/vp/24775399#24775399

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NEW YORK TIMES
SUNDAY BOOK REVIEW

May 18, 2008
Bag Man
By CHRISTINE MUHLKE

http://www.nytimes.com/2008/05/18/books/review/Muhlke-t.html?_r=2&scp=1&sq=michael%20tonello&st=cse&oref=slogin&oref=slogin

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http://www.cbsnews.com/video/watch/?id=4044433n

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NEW ENGLAND CABLE NEWS
http://www.necn.com/Boston/Arts-Entertainment/Hes-got-the-book-on-Birkin-bags/1209994267.html

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BOSTON GLOBE

http://www.boston.com/lifestyle/fashion/articles/2008/04/17/bag_man/
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PUBLISHERS WEEKLY


http://www.publishersweekly.com/article/CA6547849.html?q=%22michael+tonello%22
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USA TODAY

http://www.usatoday.com/life/lifestyle/fashion/2008-04-21-birkin-side_N.htm

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