Hermès FY Net Profit Gains 9%

PARIS — Hermès International reported net profit rose 9 percent in 2014 as revenues increased worldwide and said it would pay an exceptional dividend, though it maintained a more cautious outlook for this year, citing economic and political uncertainties. The maker of Birkin bags and silk scarves said consolidated net income totaled 859 million euros, or $1.14 billion, maintaining net profitability at 21 percent of sales. Its operating profit rose 7 percent to 1.3 billion euros, or $1.73 billion, with an operating margin of 31.5 percent, in line with its previous guidance of around 31 percent. This was below the historic high of 32.4 percent reached in 2013, due to the negative impact of currency fluctuations. RELATED CONTENT: WWD Earnings Tracker >> Hermès said it would propose a dividend of 2.95 euros per share, or $3.23 at current exchange, at its general meeting on June 2, in addition to an exceptional dividend of 5 euros, or $5.47, per share. The French luxury firm last month lowered long-term guidance despite reporting an 11.1 percent increase in revenues in 2014, above its target of annual growth of 10 percent at constant exchange rates. Hermès crossed the threshold of 4 billion euros in revenues for the first time last

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