Hermes warns of fading chic in sales

Shares

HERMES

French luxury goods group Hermes warned on Wednesday that sales growth would probably fall below target this year because of economic and political uncertainties, prompting a sharp fall in its share price.

Hermes sales in 2015 rose by 18 percent from the previous year, the company also reported, and by 8 percent once the favourable impact of the strong dollar was stripped out.

In the fourth quarter alone, sales were up 15 percent, and 7 percent at constant exchange rates, “despite the impact of the recent events in France and, to a lesser extent, in Europe”, it said.

But weakness in the luxury goods sector in the wake of terror attacks in Paris and elsewhere would probably take its toll on turnover this year, it warned.

“Due to the economic, geopolitical and monetary uncertainties around the world, sales growth in 2016 could be below the medium-term goal of 8 percent revenue growth at constant exchange rates,” it said.

Hermes, which is to publish full annual earnings in March, gave an early indication that its profit margin on operations would be close to 2014’s 31.5 percent.

But stock market investors, choosing instead to focus on trouble ahead, sold Hermes shares, sending them more than 3 percent lower

Shares

AGENCE FRANCE PRESSE

Agence France-Presse is a global news agency delivering fast, in-depth coverage of the events shaping our world from wars and conflicts to politics, sports, entertainment and the latest breakthroughs in health, science and technology.

  • Pratt

    What Railaphobes? This is another empty feat that has been created for deceitful merchants. Railaphobia was derogatorily used against Raila by late Hon. Kijana Wamalwa while explaining Raila’s paper “tigressness.” However, those who are on prowl for worthless feats are ever quick to turn rotting straws to something! I guess the much touted seemingly “stagnant reform agenda” is just a composition of halftruths and outright lies. Its extremely amusing and even hard to imagine that every little rubbish has to be loaded on this wheelless truck, christianized “reform agenda,”  that has no prospect at all of ever igniting, let alone rising!  

    • Pratt you are far from the truth The late Wamalwa gave a key note speech in Naivasha at a time when rifts had emerged in Narc trying to explain the two extremes Raila Maniacs and Raila Hater(Phobia)

      • Far from it, I was even in that meeting! Wamalwa simply wanted to mean Raila was nothing for he had beaten him in Ford Kenya contest. And thus, no one needed to worry about him. What does that mean to you pal? That you are able to cook up fake extremes that were never the point, says it all. Rifts had emeged because Raila was operating as though he was the ultimate boss. To that end, Wamalwa wanted to mean he wasnt and as such, there was no cause for alarm. Talk to those who were present and you WILL find that am 100% correct.

  • Fredy Deyi Odhiambo

    this is an indication that ODM still is the party to beat inthe coming elections

  • Peter

    My two sense is that ODM is in suddenly in some deep crisis that it has ever anticipated. Sample this – MM is out, Nyongó disgraced himself through the NHIF saga , Orengo in New land Law crisis, Now Miguna’s book is out there coming with a wind that will definatly dent RAO further. Where are the foot soldiers for General RAO? 

    That is the problem. Parading MM’s brother will not repair these dents. Gumo (whom Prof. Nyongó would have dismissed just the other day) is done some good job though.

    May be the problem is the Elites in ODM and not the man in the street. RAO, wake up before you are pissed on by your own. 

You may also like...