Hermès profits climb amid product demand

// Hermès reports a rise in profits for 2018 as product demand grows
// Operating income increased 6% to £1.75 billion
// Net profit rose 15% to £1.2 billion

Hermès has recorded a rise in its profits for 2018 as the demand for its luxury products continues to grow.

The French luxury brand and retailer’s recurring operating income increased six per cent to €2.05 billion (£1.75 billion) during the year while net profit rose 15 per cent to €1.4 billion (£1.2 billion).

Consolidated revenue amounted to €5.9 million (£5.06 million) which is an increase of 10.4 per cent at constant exchange rates and 7.5 per cent at current exchange rates.

The company said in February that full-year sales rose 10.4 per cent at constant exchange rates to €6 billion (£5.1 billion).

Hermès said the growth was thanks to all areas and product lines.

Hermès chief executive Axel Dumas said the growth “confirms the strength of the group’s growth model”.

He also said the company “remained cautious” for 2019 but “we keep our confidence for the future”.

Meanwhile, Hermès continued the roll-out of its new digital platform in Europe and China which it launched in October.

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