Hermès Stretches Profit Margin, Still Cautious on Luxury Outlook

Luxury goods group Hermès International SCA’s profit rose 13% last year, with the maker of the Birkin bag able to maintain its industry-leading margins even as revenue growth slid slightly during the fourth quarter. The tightly held family-controlled French company said on Wednesday that profit rose to €973 million ($1.09 billion) from €859 million last year on an 8.1% rise in revenue to €4.84 billion. Hermès, often regarded as the apex in the sector in both the prices it charges for its products and for its profitability, said its operating profit margin widened slightly to 31.8%, up 0.3 percentage point from the previous year. (The Wall Street Journal)