Herm S Will Open Only Three Stores This Year.

French classic luxury brand Herm s released its 2014 annual performance report for the first time, breaking its 4 billion euro mark for the first time, beating its old rival, Italy Gucci.

It is hereby announced that the annual dividend will be raised to 2.95 euros per share, plus a special dividend of 5 euros per share.

Key figures for 2014 annual performance are as follows:

Sales of 4 billion 120 million euros, an increase of 11.1% over the fixed exchange rate, higher than the expected target (an increase of 10%);

Operating profit grew 7% from last year to 1 billion 299 million euros.

The operating margin narrowed to 31.5% - due to the adverse effects of exchange rate fluctuations, which is slightly lower than the record high of 32.4% in 2013.

After consolidated statements, net profit increased by 9% compared to the same period last year, reaching 859 million euros.

The growth trend of Herm & s sales and net profit in 2010-2014 years:

From the market perspective:

The momentum continued in 2014 to the first two months of 2015, and the Japanese and US markets remained active. However, Hongkong and Macao were depressed in the wake of ongoing protests and protests in Hongkong.

It is expected that this state will continue and the market performance is very uncertain.

In 2014, although prices were nearly 40% higher than the euro area, sales in mainland China and Taiwan still maintained two digits. During the period, Hongkong and

Single digit growth.

Sales in France and other European countries account for 35% of total sales of Herm s, while sales in the European market increased by 7% year-on-year in 2014.

(excluding Japan) accounted for 34%, and sales in 2014 increased by 13% over the same period last year.

From the product category:

With the strengthening of productivity, sales of Herm s leather goods increased by 14.6% compared with the same period last year, and sales performance in 2015 is expected to continue to grow.

The demand for watches in Asian markets is still not getting warmer, resulting in a 10.6% decline in 2014 Herm s watch sales, hoping that the launch of the new watch Department President Laurent Dordet and the new watch series Slim D Herm s s could reverse the current downturn.

2015 expectations

Although the sales revenue of Herm e s broke through the 4 billion euro mark for the first time in 2014, because of the uncertainty in the world economy, regional situation and currency in 2015, Herm s lowered its annual sales growth target from 10% to 8%.

In this regard, CEO of Herm s said that the adjustment target is to achieve a sustained high sales volume. Based on the "threshold effect", the growth rate of 8% is only a medium-term target.

And this goal will also help Herm s achieve the target of 6 billion euros in 2020.

In 2014, Herm s added 700 new jobs, including more than 400 in France. By the end of 2014, the total number of Herm s group was 11718.

In 2015, Herm s will add 3 new stores and respond to the company's internal investment decisions. The existing stores will be innovated and expanded, and the investment budget will be 320 million euros, roughly equal to that in 2014.

About price adjustment

The weakness of the euro will increase the number of Chinese tourists coming to Europe, and the number of Chinese tourists traveling to Asian countries including Japan, Korea, Singapore and Taiwan will also increase.

On the contrary, Russians will reduce overseas consumption and increase domestic consumption.

Although in the current market environment, Chanel has begun to adjust prices in various regions (European price increase, China's price cut), but Herm s still has no idea of price adjustment.

In this regard, CEO said that even the price adjustment would be in the middle of 2016.

The special feature of Herm s is that it has strong customer base in France and Europe, so a sharp increase in Europe will severely hit local customers.