How a Strong Euro Caused a Dip in Hermès’ Q4 Sales

Hermès International posted a 0.4 percent decline in fourth-quarter sales as a strong euro weighed on its year-end performance.

The luxury firm, known for its Birkin and Constance handbags, said that sales for the last three months of the year totaled 1.5 billion euros ($1.8 billion), up 4.6 percent at constant exchange rates, lifted by growth from its leather goods and fashion divisions. Sales of silk and textiles were down 0.9 percent, weighing on the group’s overall performance.

Hermès said that its new site is set to get off the ground in Europe in the first half, following deployment in the U.S. and Canada. It plans to roll it out in China at the end of the year.

Operating profitability for the year should be similar to the first half, when it reached 34.3 recent of revenue, the company said.

Hermès flagged global uncertainty in its outlook but reiterated that it seeks sales growth for the year.

“In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,” it said in a statement.

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