Hermes Expects Sales Growth To Slow This Year.

French luxury goods company Hermes International Group expects sales growth in 2015 to slow down.

US media analysis indicates that the weakness of China's high-end commodity market is hitting the top of the luxury industry.

According to the US report, the Hermes company, known for its "Birkin" pack and knights theme scarf, said that sales of goods in the fourth quarter of 2014 were 1 billion 220 million euros, up 11% from 1 billion 100 million euros in the same period in 2013. This is partly due to the strong demand of American customers.

But excluding yen devaluation and other exchange rate fluctuations, its sales grew by 9.6%, down year on year.

This year, as the world's economic, geopolitical and monetary uncertainties, Hermes expects revenue to grow by 8%, slowing down from 11% last year.

The company has not released its profit figures for 2014, but expects to reduce its profit to about 31% when it announces annual revenue.

The forecast that will continue to slow down indicates that Hermes has been with Louis Weedon for a long time.

Unlike other luxury brands, customers are regarded as

The top brand of the club has not been spared in the trend of the luxury industry.

Reports say Hermes is trying to maintain its charm by ensuring that its attractive goods are hard to get and higher than the prices of similar goods.

But like other companies in the industry, Hermes has also experienced a slowdown in China due to the economic slowdown and the government's crackdown on gifts and corruption.

In the fourth quarter of last year, sales in Asia other than Japan increased by 8.9% over the same period last year.

According to the fixed exchange rate, the global watch sales decreased by 13% in the fourth quarter of last year, especially in China.

The company's business in the US has grown strongly, with sales increasing by 21%, excluding the growth of the exchange rate by 16%, consistent with the recent announcement by other luxury brands.

Last week, the Louis Weedon group said American consumers pushed their growth last year to offset the sluggish sales in China.

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Last Tuesday, the Danish jewellery brand Pandora reported its success again, and its share price rose by more than 18%.

According to reports, the Pandora report, which is famous for its colorful beaded bracelet, reported in the fourth quarter of 2014: (1 Danish gram is equal to 0.95 yuan).

Sales increased by 40.4% to 3 billion 960 million dkrona.

Operating profit was 1 billion 380 million DKK, an increase of 54% over the previous year, exceeding the 1 billion 250 million kronor expected by Reuters analysts.

Raised the share repurchase program from 2 billion 400 million DK to 3 billion 900 million DK, increasing the dividend from 6.5 kronor to 9 kroner per share.

Let's go back to Pandora's experience of reversing U.

In August 2, 2011, Pandora's share price hit an astonishing 66% record of a day's plunge. It was due to a 30% drop in revenue in 2011, and CEO announced its resignation on the same day. As a result of management mistakes, the blind price hike to the luxury goods, leading to the loss of the original customer group. At that time, the European economic downturn led to a price of about 100 to 1 thousand dollars. The Pandora between the cheap jewelry and high-end jewellery was very vulnerable to the middle class's tight spending.

After management changes and strategic adjustment, Pandora returned to the light luxury position of the people. In August last year, it announced a 10 year cooperation agreement with Disney, adding Disney's classic animation image to its jewelry design.

As the performance rebounded, Pandora's share price climbed gradually from the second half of 2012. As of February, 24, the Japanese stock price was 590 kronor, which was 16 times more than that of the lowest three years ago (37 kroner).

Last Tuesday, Pandora also announced major initiatives in the Chinese market:

According to the agreement, from July 1, 2015 to December 31, 2018, Pandora will join hands with Hongkong Oracle Investment Co., Ltd. to launch the sales of Pandora brand jewelry in China. When the agreement is terminated, Pandora will fully take over the Chinese business.

Oracle has been acting as agent for Pandora in China since 2011. According to this agreement, in July 1, 2015, Pandora will acquire the main assets of Oracle in China, with a down payment of HK $120 million, and the final purchase price will depend on the sales volume realized in 2018 (estimated between 2 and HK $500 million) in 2018. The balance will be delayed until the termination of the agreement.

At present, Pandora has 30 concept stores and 19 stores in China.

Pandora expects total sales in 2015 to reach 14 billion Danish kronor, 17.6% higher than 11 billion 900 million in 2014, and the profit margin before interest tax depreciation (EBITDA) can reach 37%, a percentage point higher than that in 2014.

In 2014, a 33 year old Pandora opened 310 concept stores, and plans to open 300 new stores this year, bringing the total number to more than 1700.

Alan Leighton, chief executive, said there was still room for more stores.

Starting next month, Anders Colding Friis, the former Scandinavia tobacco group, will succeed Leighton as the new chief executive of Pandora.