GO
Loading...

Hermes co-CEO: Yen weakness means we may hike prices

The co-CEO of Hermes said that volatility in the currency markets, particularly the yen, could lead the French luxury goods maker to price hikes next year.

Axel Dumas, the co-CEO of Hermes, told CNBC that the company was the "only" brand not to increase its prices in 2013, because it had fully hedged the euro. He added that currency fluctuations could prove an issue however in 2014.

"We hedged ourselves one year ahead, but the decrease in the yen will have an impact for us in 2014," said Dumas.

(Read more: What Burberry Is Doing Right That Other Luxury Retailers AreNot)

"So one of the options for us will be to increase the price, but we will see also what else we can do, because we don't really like to have huge price increases. We try and maintain it (prices), but it is one of the options."

Dumas said the firm's currency hedge meant the bottom line in 2013 was not hit by volatility in emerging markets and currency markets.

"Our operating margin was 33 percent, which is 1 percent higher than last year. This 1 point increase is primarily due to the positive impact of the foreign exchange hedging."

(Read more: Fake execs scammed $220,000 in luxury flights, limos, hotels,Tiffany's)

Dumas added that the waiting list for the brand's trademark 13,000 euro ($17,141) Birkin bags was " too long for us to say", and said that Hermes enjoyed trying to keep up with the requests.

"They are handmade and we only use the finest material. This the core of we are doing and we do not compromise on that. The flip side is that there is more demand than we can produce," he said.

By CNBC's Jenny Cosgrave: Follow her on Twitter @jenny_cosgrave

Contact Luxury

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More