Hermès Q4 Sales Rise 10.7% at Constant Rates

PARIS — Hermès International reported revenues rose 10.7 percent over the last three months of 2019 at constant rates, slowing from the previous quarter and giving a snapshot of luxury business before the coronavirus outbreak. In its annual results statement, the high end silk and leather goods company made no mention of the virus, which is disrupting business and weighing heavily on share prices across industries: Luxury goods groups have seen a $25.5 billion decrease in market capitalization since Monday. “Hermès achieved outstanding performances this year, based on a balanced growth in all the business lines and in all the geographical areas,” Hermès chief executive officer Axel Dumas said in a statement. Annual profit was 1.53 billion euros, 22.3 percent of sales. Fourth-quarter sales reached 1.87 billion euros, with the fastest growth coming from its smallest region, the Americas. “Strong as expected,” said Luca Solca, an analyst with Bernstein, in an email note to clients. “Hermès should prove among the most resilient in the slowdown – waiting lists for its iconic products should partially offset its relatively high exposure to Chinese nationals globally.” Asia, the company’s most important region, clocked 10.2 percent growth at constant rates, dragged down by a slight decrease in Japan, down 0.1

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