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Bag maker Hermes sees no changes to sales trend as profits rise

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Bag maker Hermes sees no changes to sales trend as profits rise
FILE PHOTO: A couple walk with Hermes shopping bags as they leave a Hermes store in Paris, France, March 21, 2013. REUTERS/Philippe Wojazer/File Photo   -   Copyright  Philippe Wojazer(Reuters)
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PARIS (Reuters) – Handbag maker Hermes, one of the luxury brands still riding high on strong demand from Asian clients, said on Wednesday it had not observed any change in sales trends so far this year.

“There is no trend change at this stage,” Chief Executive Axel Dumas told journalists after posting full year results, adding that Hermes “remained cautious” for 2019 but was confident about its prospects.

The French label, known for its squared silk scarves and Birkin handbags that sell for more than $10,000, posted a 15 percent rise in net profit for 2018, to 1.4 billion euros (1.20 billion pounds).

Its operating income rose 6 percent to 2 billion euros, with margins reaching 34.3 percent of its sales in 2018, a slight dip from the record reached a year earlier, although it remains one of the highest in the industry.

(Reporting by Sarah White and Pascale Denis; Editing by Sudip Kar-Gupta)

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