By Ladka Bauerova
June 2 (Bloomberg) -- Hermes International SCA Chief Executive Officer Patrick Thomas said the Japanese and U.S. markets remain difficult and that the company postponed the opening of two stores in China.
The maker of Birkin handbags also deferred plans to extend two production sites in France, Thomas said today at the company’s annual shareholder meeting in Paris.
“We have a crisis, all luxury companies can feel it,” he said. “It would be illusory to think that Hermes can escape.”
Speaking in an interview after the meeting, Thomas repeated the company’s forecast for unchanged sales this year, excluding currency swings. Revenue growth in absolute terms will be 6 to 8 percent, the CEO said.
Hermes expects to open eight stores this year and won’t reduce capital spending, according to Thomas.
Responding to speculation that Hermes may become a constituent of the benchmark CAC 40 Index, the CEO said including the stock in the average would not necessarily be beneficial and may make the share price volatile.
The company will keep buying back stock this year, he said.
To contact the reporter on this story: Ladka Bauerova in Paris at lbauerova@bloomberg.net.
Last Updated: June 2, 2009 13:03 EDT
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