Hermès India sees a 55 percent rise in net profit to Rs 19 crore
The Indian unit of Hermès International has witnessed a 15 percent jump in its net profit to Rs 19 crore ($2.7 million) for the financial year 2019 with revenue of Rs 110 crore.
Despite the economic slowdown, the luxury brand managed to post strong growth in both sales and profit for the fiscal year.
Hermès India had reported a net profit of Rs 12 crore during the last financial year on a sales revenue of Rs 98.8 crore, according to its filings with the Registrar of Companies (RoC) accessed by the Economic Times.
Many luxury brands that earlier stayed away from India due to red tape, high taxes and lack of retail infrastructure are now turning their focus to the country, as they see huge potential for growth.
Recently, luxury goods retailer Louis Vuitton India Retail, which operates Louis Vuitton in India, had reported a 24 percent rise in its net profit to Rs 16 crore on revenue of Rs 245 crore.
Luxury retailers like Hermès and Louis Vuitton are riding on the value of India’s luxury goods segment, which is estimated to be worth $8 billion, according to market research firm Euromonitor. It is expected to grow 7 percent over the next three years.
Hermès currently has two stores in India, in the metro cities of Mumbai and Delhi.
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