Hermès Sales Rise 7.6% in Q4

Hermès Sales Rise 7.6% in Q4 Joelle Diderich PARIS – Hermès International sales rose 7.6 percent in the fourth quarter, driven by strong momentum in Europe and Japan. Sales totaled 1.5 billion euros, or $1.62 billion, in the three months to Dec. 31, up 6.6 percent at constant exchange rates. The quarter capped a year of healthy growth for the maker of Birkin bags and silk scarves, with sales rising 7.5 percent to 5.2 billion euros, or $5.75 billion, in 2016. Hermès reaffirmed that it expects operating profitability to be slightly higher than in 2015. The French luxury goods firm said last year it would no longer quantify its medium-term sales growth target but it continues to have "ambitious" goals for revenue growth at constant exchange rates. France posted organic growth of 7.1 percent in the fourth quarter after falling 0.9 percent in the third quarter, suggesting the country is slowly turning the corner after a year marked by the impact of a series of terrorist attacks, which have sharply dented tourism. Sales in the rest of Europe were up 9 percent at constant exchange rates, a slight worsening versus the previous quarter. Japan accelerated with sales up 8.9 percent, but the Asia-Pacific region posted a more moderate growth of 4.4 percent. Follow WWD on Twitter or become a fan on Facebook. Read More... Fashion 3