Ethics is a component of the economic valueIf we had a smaller engine we sell more vehiclesLonger term Dominique Bussereau referred to a second battery of measures is politically more sensitive announcementNever for thirty years the Toulouse municipal election was also openedTherefore employees feel to be left behindThe new is the effect a coup of Thunder on the marketsEditions of the oak 224 pages 5990 EURHis tragedy through a music a rare densityIts net income rose by 214 to 643 millionThe Hermes share price in session yesterday touched a new historic Summit, to 105.58 euros, at the announcement of the results of the luxury group, with the rise of the title to nearly 70 in eight months. Last year, the net profit still rose by 8.7, to EUR 268,4 million, and net sales 6 to 1.5 billion.
"All our businesses grew, welcomed Mireille Maury, Director General Finance-administration. First perfumes, with an increase of 39, with the launch of land of Hermes. The arts of the table have won 22 and 17 leather bags. All of our geographical areas recorded higher sales, including the Japan. "The operating margin is still mounted to half a percentage point, to 27.4 of net sales, a record.
These performances however are not sufficient to explain the very strong speculation around the title since last August, which is that the company is today valued at 11 billion, or 42 times its net result, an exceptionally high multiple. For the broker Aurel Leven, "this speculative premium is justified by the unique status of the mark in the universe of luxury." Hermes, founded in 1837, is a trade mark in part, by its requirement of quality products, and their tenure. This does not prevent creativity, but far from the effects of mode. In the leather upholstery (44 of the turnover) is expected: often a year for a bag, more when in the lizard for example.
Unfounded rumours
On the direction, is ensure that rumours that feed the market are unfounded. If Hermes is in stock since 1993, the majority of the capital, 75, is owned by the family. "Its members are welded and solidarity of a project on the long term," provides Mireille Maury. This locking of capital be added that linked to the status of the company, a limited partnership. Almost all of the powers of management belong to Emile Hermès, the SARL brings together the descendants. A purchaser to hold a majority of the capital would therefore step for control of the company. And the articles necessary to declare any overflow of upper threshold to 0.5 under penalty of deprivation of voting rights.
However, "the dividend paid to shareholders is low and does not always pay the ISF," argued a close. The rate of return is less than 1. Suggesting to the market that, among the forty family shareholders, some might be tempted by an assignment of their shares, now Jean-Louis Dumas, who was a very long time pattern, went into retirement.
If Hermes is not for sale, he has the means to buy, with a net cash of 538 million in all cases. His Manager, Patrick Thomas, was prepared yesterday to acquire "a group whose product would be unique, singular and exceptional, and therefore not necessarily in the luxury". In 2006, Hermes took a 25 stake in the watch factory Vaucher. The group will continue this year to a policy of investment with the opening or the extension of 24 stores in Osaka, New York, Istanbul, and China for a network in late 2006 of 252 points of sale.
