Hermès shares dip as handbag maker’s growth slowed by production caps
Luxury handbag maker Hermès has reported sales growth slightly below expectations, pushing its share price down on Friday morning.
The French luxury group reported sales growth of 11 per cent in the final quarter of 2021. This was slightly below expectations due to its own production curbs, which it said it “anticipated”.
Shares were down almost five per cent in Friday morning trading. Shares were down 10 per cent on their price last month and were trading at their lowest price in more than eight months.
The group reported revenue amounting to €9bn, up 42 per cent at constant exchange rates.
Providing a medium-term outlook, the group said that “despite the economic, geopolitical and monetary uncertainties around the world,” it was committing to its “ambitious goal for revenue growth at constant exchange rates.”
Axel Dumas, executive chairman of Hermès, said: “I thank above all the passion and quality of our teams’ work, because together we have made 2021 an exceptional year. Abundant creativity, unique know-how and the quality of materials have driven the growth of our sixteen métiers.
“Hermès is very dedicated to its role as a committed and responsible company and continues its commitments to job creation around the world and to regional regeneration in France, while reinforcing its ambitious environmental objectives.”