Hermes said its 2008 net earnings rose 0.8 per cent to $598 million (euro290.2 million) despite the economic crisis, prompting it to propose a 3.0 per cent dividend rise. -- PHOTO: HERMES
PARIS - FRENCH luxury goods group Hermes said Thursday its 2008 net earnings rose 0.8 per cent to $598 million (euro290.2 million) despite the economic crisis, prompting it to propose a 3.0 per cent dividend rise.
The group said its performance at the start of the year was consistent with its goal to achieve stable sales in 2009. Sales last year gained 8.6 per cent to 1.765 billion euros.
The 2008 annual results, which were in line with expectations, cheered investors, as Hermes shares rose 7.88 per cent to 22.60 euros in early afternoon trading on a generally stronger Paris market.
Analysts at CM-CIC Securities said Hermes had shown 'its capacity to resist the (economic) crisis thanks to its traditional products,' such as silk and leather goods.
Hermes finance director Mireille Maury said sales at the company's own stores were improving, having held up in 2008 'even in the fourth quarter.'
Hermes's own stores account for 70 per cent of sales, with the rest coming through distributors.
Maury said that while net earnings could dip slightly this year, the company was sticking to its investment plans, which were valued at 160 million euros last year and call for the opening or renovation of more than 20 stores, notably in Asia and the United States.
The Hermes board of directors is to propose a dividend of 1.03 euros per share for 2008, up 3.0 percent from 2007. -- AFP
