PARIS, March 25 (Reuters) - French luxury group Hermes (HRMS.PA) posted on Thursday 25 March a 3.1 percent rise in operating profit for 2009 in spite of the industry's worst downturn in two decades. But it steered clear of giving an updated forecast for 2010 after having said in early February it expected a slight rise in operating profit for the current year and stable net earnings.

Photo : AFP/Archives/Timothy A. Clary

The Paris-based group produced an operating profit of 462.9 million euros against 449.2 million euros in 2008 but overall its operating margin reached 24.2 percent last year, down from 25.5 percent in 2008.

At constant exchange rates, Hermes said its operating profit was up 3.9 percent against 2008, and its operating margin remained stable.

At the end of the year it had cash of 508 million euros, it added.

"In 2010, Hermes will continue to invest in developing its distribution network," the group said in a statement.

Hermes proposed a dividend of 1.05 euros a share for 2009, up from 1.03 for 2008. (Reporting by Astrid Wendlandt, editing by Will Waterman)