(Boursier.com) — Hermes jumped almost 6% to 2,198 euros this Friday to reach a new historic peak, while the group reported a greater than expected increase in its sales in the fourth quarter… Overall, in 2023, the figure The group’s consolidated sales amounted to 13,427 ME, up 21% at constant exchange rates and 16% at current exchange rates compared to 2022. The current operating profit stood at 5,650 ME, or 42 .1% of sales. The group’s net profit reached €4,311 million, up 28%…
In the fourth quarter of 2023, sales reached €3,364 million, up 18% at constant exchange rates and 13% at current exchange rates, despite the particularly high basis of comparison in America and Asia. The group is continuing the trend recorded in the third quarter thanks to sustained activity.
At the end of December, all regions posted solid performances with consistent growth of around 20%. Activity is progressing in the group’s stores (+20%), which benefited from strong demand and the strengthening of the exclusive distribution network, as well as in the wholesale sales network (+24%), driven by sales to travelers…
Dividend to follow
The consolidated net profit, group share, stood at 4,311 ME (32.1% of sales), compared to 3,367 ME in 2022, an increase of 28% which results from the solid operational performance as well as an improvement in cash remuneration. Self-financing capacity stands at €5,123 million, up 25%. It made it possible to finance all operational investments (859 ME) and the increase in working capital requirements (794 ME), in line with the strong growth in activity. Adjusted free cash flow thus amounts to €3,192 million.
After payment of the ordinary dividend (1,359 ME), taking into account financial investments (316 ME) and share buybacks (132 ME for 74,954 shares excluding liquidity contract), restated net cash increased by 1,422 ME and reached 11,164 ME.
At the General Meeting on April 30, it will be proposed to set the dividend at 15 euros per share. The deposit of 3.50 euros, which will be paid on February 15, 2024, will be deducted from the dividend which will be decided by the General Meeting. An exceptional dividend of 10 euros per share will also be proposed to the General Meeting.
Perspectives displayed
In the medium term, despite economic, geopolitical and monetary uncertainties in the world, the group confirms an ambitious turnover growth objective at constant rates. The group is approaching 2024 with confidence, building on its highly integrated artisanal model, its balanced distribution network, the creativity of its collections and the loyalty of its customers…
Rising prices
The luxury group Hermès has also announced that it will increase its prices this year at the global level “by 8% to 9%”, which allows its dominant positioning in the sector.
Among broker reviews, JP Morgan highlights “strong brand momentum across all product categories and geographies, a well-invested operating base that benefits from continued leverage and strong returns on investment for shareholders. Hermès is “still the fastest growing luxury brand,” according to Citi.
For Bernstein, “it is important to note that leather goods are in the lead and showing double-digit growth over the quarter, defying the usual end-of-year lull.” Handbags such as the coveted Birkin model, worth more than $10,000, are only accessible to the wealthiest buyers, generally more sheltered from economic vagaries…