“Hermes International SCA (RMS), the French maker of Kelly bags and silk scarves, reported 2012 earnings that exceeded analysts’ estimates as it increased production.
Operating profit rose 26 percent to 1.12 billion euros ($1.45 billion), the Paris-based company said today in a statement. Analysts predicted profit of 1.09 billion euros, according to the average of 15 estimates compiled by Bloomberg. The operating margin widened to 32.1 percent, the highest since its shares began trading in 1993.
Hermes said last month it expected that measure of profitability to beat 2011’s 31.2 percent after a surge in fourth-quarter sales led to a 16 percent gain in full-year revenue, excluding currency swings. The company, which added two workshops in France in 2012, exerts control over revenue by limiting supply of its handbags amid strong demand, according to Exane BNP Paribas….”
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