Hermès Net Gains 6.8% as Margin Widens

The French group said its operating margin reached 32.4 percent in 2013, a record high.

PARIS — Hermès International said it achieved a record operating margin of 32.4 percent last year, a 0.3 point improvement over 2012.

Net income in 2013 rose by 6.8 percent to 790 million euros, or $1.05 billion, reflecting higher taxation, particularly in France.

Hermès reported operating income rose 8.9 percent to 1.21 billion euros, or $1.62 billion, leaving it with a cash pile of more than 1 billion euros, or $1.36 billion.

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Dollar figures are converted from euros at average exchange rates for the 12-month period ending Dec. 31.

Revenues last year rose 7.8 percent to 3.75 billion euros, or $4.99 billion, as reported. Stripping out currency fluctuations, sales were up 13 percent, topping the company’s target of 11 percent to 12 percent growth.

The company provided no specific earnings or sales guidance or 2014, vowing to “reinvent itself and push the limits of excellence.”