Luxury goods group Hermes delivers record 2016 profit margin

French luxury goods group Hermes posted on Wednesday a 13 percent increase in 2016 net profit, providing­ further evidence of a broader recovery in the luxury goods industry, and reported a record operating profit margin.

Hermes, known for its US$10,000 Birkin bags and US$400 printed silk scarves, said its operating margin had reached a record 32.6 percent of sales against 31.8 percent in 2015, while the company also increased its dividend by 12 percent.

Hermes said it was keeping an “ambitious” medium-term goal for revenue growth at constant exchange rates, despite growing economic and geopolitical uncertainties around the world. - Nampa/Reuters