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“Hermes valued more than SocGen” – it’s about time

September 2, 2011

Family-controlled Hermes, the maker of the iconic Birkin bag, silk-print scarf and discreetly branded necktie, is a more valuable asset than the bank Societe Generale.

So it was pointed out in early September when the famous luxury brand, in terms of its market capitalisation on the French stock exchange, was worth more than country’s second-biggest bank.

An analyst quoted in a Bloomberg story about the two firms’ valuations summed up the differences well.

Hermès notches up a strong first half

September 1, 2011

Family-controlled Hermès has posted strong first half 2011 results, as the Paris-based luxury company further consolidates its position as one of France’s strongest luxury groups.

Hermès, maker of the famous Birkin handbag, reported a 22% year-on-year rise in revenue to €1.30 billion for the first half of 2011. Net profit too rose by 50% to €291 million, aided in part by the family’s sale of its minority stake in fashion group Jean-Paul Gaultier in May.

Ferragamo results confirm family business boom in luxury

August 30, 2011

The luxury sector continues to be highly profitable for the family businesses operating within it with the latest results from top shoemaker Salvatore Ferragamo confirming the boom.

Hermes' attempts to buy back shares leaves lobby group unimpressed

August 3, 2011

The Hermes family’s creation of a controlling family holding has once again come under scrutiny, with French lobby group L'association de défense des actionnaires minoritaires (Adam) questioning decisions to spend company cash on buying back shares.

Hermes was given the go ahead to set up a controlling family holding in January, a move seen by many as a bid to deter a takeover from luxury goods company LVMH.

Families, feuds, France - and luxury

June 30, 2011

In the smartest arrondissement in Paris, the eighth, there is an area referred to by the locals as the triangle d’or. It’s formed by three of the most exclusive shopping Avenues – Montaigne, George V and Champs-Élysées – and contains a number of fashionable Rues in between. It is also the home of some of the best-known family businesses in the luxury sector.

Rising Hermes stock fuels takeover speculations

June 8, 2011

The stock of family-controlled luxury group Hermes has risen to a seven month high, causing speculation that rival family company LVMH is buying more Hermes shares.

Hermes stock rose to a high of €207.75 per share on 7 June – trading at 35 times its 2012 earnings, pushing up its market capitalisation to around €20 billion. This valued the group higher than some of France’s biggest companies including Michelin and Airbus.

Hermes family determined to retain control of business

May 20, 2011

The Hermes family, majority owners of the French luxury goods company of the same name, said they were determined to remain in control of the business following an attempt to stop them using their voting rights.

In a statement on 19 May, the Hermes family said that the Association for the Defence of Minority Shareholders has filed an application to deprive the family of their voting rights during the annual general meeting, scheduled for 30 May.

Savvy LVMH investments already paying off

May 11, 2011

Family-controlled luxury goods company LVMH will be buoyed by its recent investment in fellow family businesses Bulgari and Hermes as the two groups reported strong first quarter results.

Jewellery house Bulgari, whose family members have sold 51% control of the company to Bernard Arnault’s LVMH, announced on 10 May that its net profits rose to €9.3 million for the quarter, after a loss of €8.3 million during the same period last year.

Puig and Hermes enter into share sale agreement

May 4, 2011

Puig, the family-controlled perfume and cosmetics group, has become the majority shareholder in fashion house Jean Paul Gaultier after it purchased a 45% stake in the company from fellow family-controlled business Hermes.

Puig said in a statement on 4 May that it has bought Hermes’ full 45% stake in Jean Paul Gaultier for €16 million, along with some of the designer’s shares, but added that founder Jean Paul Gaultier – after whom the company is named – will continue to be responsible for its creative activities.

Family businesses report strong first quarter results

April 21, 2011

The year has started well for family-controlled businesses in Europe, with many reporting strong growth in the first quarter of 2011.

French family-controlled luxury goods company LVMH, headed by Bernard Arnault, said in a statement that its revenues for the first quarter of the year rose by 17% to €5.2 billion, when compared to the same period last year.