Foreign Exchange Market and Consolidated Sales Essay

Submitted By putjeeb
Words: 607
Pages: 3
Open Document
HERMES
Nice rise in sales and profits

Paris, 30 August 2013

The Group's consolidated sales in the first half of 2013 amount to €1,767.2 million, up 11.0% (+14.4% at constant exchange rates).
Recurring operating profit and net profit rose by almost 14%.
Sales by geographical region
(at constant exchange rates unless specified otherwise)
In the first half of 2013, growth was balanced in all regions of the world:
•

Non Japan Asia (+17%) maintained its momentum. The Chinese market continued to display great vitality. •

Japan (+8%) confirmed the turnaround observed in the first quarter, and came back on track to sound growth. •

France (+13%) and the rest of Europe (+14%) posted remarkable performances in a difficult economic environment.

•

The Americas (+17%) had an excellent half-year.

Sales by sector
(at constant exchange rates unless specified otherwise)
Demand for Hermès products remains strong, impelled by great creativity. The expansion of the growth relays bore fruit. Advancement of bag sales remains constrained by production capacity.
Leatherwork & Saddlery (+10%) is continuing its investments, with the expansion of two factories opened in
2012 in Isère and Charente, and with the plan to create two new facilities devoted to artisanal activities in the
Franche-Comté region.
Ready-to-wear & Fashion Accessories, flush with the success of the latest ready-to-wear collections and fashion accessories, registered strong growth (+21%).
The Silk and Textiles sector (+13%) is benefiting from the great variety of its collections.
Perfumes (+20%) remained on an uptrend. The new female perfume Jour d’Hermès was warmly received and Terre d’Hermès continued its growth.
Watches (-1%) were affected by the general downturn in the watch industry and the high basis for comparison of the previous year.
Other sectors (Jewellery and Art of Living) continued to show their great potential for expansion (+40%).

Operating margin reaches 33.1% of sales
Operating profit rose by 14.3% to reach €584.1 million compared to €510.9 million in the first half of 2012.
The operating margin (33.1% of sales) improved by one point, due primarily to the positive impact of foreign exchange hedgings.
Consolidated net profit amounts to €381.7 million, up 13.9%.
Cash flow from operations reached €476.2 million, growing 21.3%. The increase was faster than that of net income due to this year's larger proportion of expenses with no cash impact (recognition of hedging instruments at fair value and of bonus share plans). After financing operating and financial investments
(€74.9 million), ordinary dividend (€260.3 million) and working capital requirements, net cash position
Show More

Related Documents: Foreign Exchange Market and Consolidated Sales Essay

Notes econ 462 Essay

Interest Rate Arbitrage 462 10/14/2013 Exchange rate risk and int. business 1. Overseas operations a. Country a – sales and profits b. Country b – sales and profits c. Country c – sales and profits Consolidated financials would have to take into consideration the exchange rate of each country at a given time. If exchange rates are unfavorable then the consolidated profits will be hurt. If a US business buys from a foreign business exchange rate must be accounted for. If an on delivery…

Words 408 - Pages 2

Essay on Mcdonald's Risk

those risks for the conduct of the audit. Financing and market risk The Company generally borrows on a long-term basis and is exposed to the impact of interest rate changes and foreign currency fluctuations. Debt obligations at December 31, 2007 totaled $9.3 billion, compared with $8.4 billion at December 31, 2006. The net increase in 2007 was primarily due to net issuances of $573 million and the impact of changes in exchange rates on foreign currency denominated debt of $342 million, partly offset…

Words 1254 - Pages 6

International Accounting Essay

trade is the risk that the foreign currency will decrease in US $ value over the life of the receivable. A company can hedge against a loss from an exchange rate fluctuation by having a foreign currency option or a forward contract. 3. Increase sales and profits, enter rapidly growing or emerging markets, reduce costs, protect domestic markets, protect foreign markets, and acquire technological and managerial know-how. 5. Some financial reporting issues of making a foreign direct investment is the…

Words 634 - Pages 3

Income Statement and Comparable Sales Essay

included: Global comparable sales increase of 0.2%, reflecting higher average check and negative comparable guest counts Consolidated revenue increase of 2% (2% in constant currencies) Consolidated operating income increase of 2% (3% in constant currencies) Diluted earnings per share of $5.55, up 4% (4% in constant currencies) Return of $4.9 billion to shareholders through dividends and share repurchases Fourth Quarter results included: Global comparable sales decrease of 0.1%, reflecting…

Words 1238 - Pages 5

Sharp Corporation Essay

emerging markets such as South Korea and Taiwan are…

Words 1644 - Pages 7

Essay about Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures

Introduction General Motors was the world’s largest automaker and, since 1931, the world’s sales leader. In 2001, GM had unit sales of 8.5 million vehicles and a 15.1% worldwide market share. Founded in 1908, GM had manufacturing operations in more than 30 countries, and its vehicles were sold in approximately 200 countries. In 2000, it generated earnings of $4.4 billion on sales of $184.6 billion. The company is trying to accurately calculate the risk of a potential devaluation to the ARS. In…

Words 2328 - Pages 10

Essay about Similarities and Differences. a Comparison of Ifrs and Us Gaap

and US GAAP October 2007 PricewaterhouseCoopers’ IFRS and corporate governance publications and tools 2007 IFRS technical publications IFRS Manual of Accounting 2008 Provides expert practical guidance on how groups should prepare their consolidated financial statements in accordance with IFRS. Comprehensive publication including hundreds of worked examples, extracts from company reports and model financial statements. IFRS News Monthly newsletter focusing on the business implications of…

Words 33240 - Pages 133

Financial Structure and International Debt Essay

finance structure for foreign subsidiaries that conforms to local debt norms are as follows: ( A localized financial structure reduces criticism of foreign subsidiaries that have been operating with too high a proportion of debt (judged by local standards), often resulting in the accusation that they are not contributing a fair share of risk capital to the host country. At the other end of the spectrum, a localized financial structure would improve the image of foreign subsidiaries that have…

Words 3484 - Pages 14

ACC501 MOD1 CASE Essay

CASE For Dr. Intro Abercrombie & Fitch Co. (A&F) an American-based fashion retailer that has more so focused on their profitable men, women and kids objective market. They operate by way of retail stores and direct-to-consumers through their website. Hennes & Mauritz (H&M) a middle-market clothing company based in Stockholm, Sweden. They opened their first store in 1947 and have expanded to approximately 2,226 stores located in thirty-eight countries. The purpose of this…

Words 2245 - Pages 9

Adverse Economic Conditions For Network Operators To Postpone Investments

services in both fixed and mobile networks. We are dependent upon the market acceptance of such services, e.g. music, internet and navigation in the handset, and on the outcome of regulatory and standardization activities in this field, such as spectrum allocation. If delays in standardization or market acceptance occur, this could adversely affect our business and operational results. We operate in a highly competitive industry The markets we…

Words 3780 - Pages 16