Latest news with #HermèsInternational
Daily Mail
31-07-2025
- Business
- Daily Mail
Mystery deepens over oddball Hermès heir, who promised to sell £10billion of shares to his gardener and then to a Qatari sheikh, as brand's boss says he 'no longer holds' his stake
The billionaire scion of the luxury design house Hermès reportedly no longer holds his €14 billion (£12.1 billion) shares in the brand, but it's not immediately clear why or where the funds have gone. Nicolas Puech, 82, made headlines in 2023 when he announced that he was leaving his fortune to his former gardener, which would make the worker the billionaire's rightful heir. The mystery continued last year when Puech, a fifth-generation descendant of the house's founder, Thierry Hermes, allegedly defaulted on a promise to sell shares to the Qatari sheikh. At the time, the complaint, filed in the District of Columbia by a company representing the Qatari leader, Honor America Capital, and seen by the New York Times, accused Puech of breaching his contract with them to sell shares. The lawsuit, filed last March, stated that Puech holds a five percent stake in the French luxury retail giant, and that he agreed to sell more than six million shares, trading at $270.89 each, to the Qatari royal family. Now, in the latest twist, Hermès International SCA said it believes that Puech no longer possesses any shares in the luxury fashion house and hasn't done for some time, leading them to take legal action. Executive chairman at Hermès, Axel Dumas, told Bloomberg via Business of Fashion, 'I've had the certainty for a long time that Nicolas Puech no longer holds his shares', adding, 'This is why we've started legal proceedings.' The legal battle is reportedly facing further complications because Puech's former wealth manager died last week. Dumas said he believes the shares cannot be recovered. Lawyers for Puech and Freymond couldn't be reached for immediate comment by Business of Fashion. Hermès has dealt with the issue of Puech's shares for some time. Over ten years ago, the brand fought an advance from rival Bernard Arnault, chairman and CEO of LVMH, the world's largest luxury goods company. Even during the 2014 agreement where the brand recoiled Arnault's stake, the future of Puech's shares still remained unclarified. The plot thickened in 2023 when the heir told courts in Switzerland, where he lives, that his shares had vanished while they were being handled by his former wealth manager, Eric Freymond, who died last week. That same year, he hit headlines again for reportedly attempting to leave a substantial portion of his vast wealth to his longtime gardener and handyman - though the plan never materialized. Puech moved to adopt his former greenskeeper, according to sources cited by Swiss publication Tribune de Genève at the time. The Hermes scion, who does not have kids and is not married, is said to have referred to his former employee - reportedly from a 'modest Moroccan family' - and his wife as his 'children'. The gardener was poised to inherit significant assets from his former employer, including properties in his native Morocco, as well as Puech's retreat in Montreux, Switzerland. However, the plan fell through after Puech told a Swiss court he does not actually have much of a fortune left to hand out. The attempt to adopt his greenskeeper came off the back of suspected family tensions, which arose in part due to a rival takeover of a significant stake in Hermès shares. Earlier this year, the brand was entangled in fresh courtroom drama after Puech allegedly defaulted on a promise to sell shares to the Qatari sheikh. He was slapped with a lawsuit on behalf of Sheikh Tamim bin Hamad Al Thani, the Emir of the State of Qatar. The lawsuit, filed in March, stated that Puech holds a five percent stake in the French luxury retail giant, and he agreed to sell more than six million shares, trading at $270.89 each, to the Qatari royal family. It appealed to a judge to order him to honor the sale and pay $1.3 million in damages for 'lost profits, opportunity costs, and reputational harm.' Puech is accused of delaying the sale twice. Puech's lawyer said his client was not involved in the deal and was not aware of it until reading about it in the press, according to Bloomberg. The Hermes heir also previously told courts in Switzerland, where he lives, that his shares had vanished while they were being handled by a wealth manager. Letters filed with the lawsuit detail how the deal was discussed over several months and signed off on February 10. Hermes was worth $300 billion in mid-February, after share prices rocketed more than 200 percent over the last five years, making a five percent stake incredibly valuable. Puech had in 2011 pledged to bestow his fortune upon the Isocrates Foundation - a philanthropic organization he founded which provides grants to 'support the fundamental role civil society organizations play in safeguarding and stimulating public debate'. According to its website, the foundation 'funds and supports public interest journalism and media organizations committed to strengthening the field of investigative journalism'. Should Puech still hold his stake, he would be the single and largest investor in the brand responsible for the beloved Birkin bag.
Bloomberg
24-07-2025
- Business
- Bloomberg
Hermes Heir's Ex-Adviser Dies as $16 Billion Legal Fight Endures
The former adviser to an Hermès heir has died as a longstanding mystery over the whereabouts of company shares worth some €14 billion ($16 billion) remains unsolved. Eric Freymond worked for 24 years as a wealth manager to Hermès descendant Nicolas Puech before their relationship soured, leading to a court case in Geneva. The wealthy octogenarian Puech alleged that Freymond had played a role in the disappearance of some 6 million shares in Hermès International SCA that he had inherited.
Yahoo
30-04-2025
- Business
- Yahoo
Hermès AGM Tackles Tariffs, Dupes and Why It Won't Produce in the U.S.
PARIS – The Hermès International shareholders' meeting met the moment, with the company holding its position as France's largest luxury company in terms of market capitalization. 'It may last a day or two, but at the moment we are the largest French capitalization in the financial markets,' said chief executive officer Axel Dumas. More from WWD Louis Vuitton Has Bumped Up Handbag Prices in the U.S. Hermès Continues to Increase Handbag Production Amid Rising Demand Hermès Preps for Potential Price Rise in the U.S. in Face of Tariffs Held at the Salle Pleyel, which hosts splashy awards shows such as the César awards, Hermès celebrated its pole position with an opening xylophone performer, followed by an eclectic series of films sprinkled throughout the presentation. The themes varied from tales about the company's craftsmanship and how bags are repaired and restored to an ode to this year's theme of the 'art of drawing,' and a madcap, Wes Anderson-style slick take on their fanciful immersive traveling treasure hunt that popped up in locations including Hong Kong and Dubai. The panel of executives presiding over the events included supervisory board chair Éric de Seynes, chief financial officer Eric du Halgouët and Dumas. Hermès' performance in 2024 was 'solid in a rather unpredictable economic and geopolitical context,' du Halgouët said. Dumas assured the audience that Hermès' solid performance is not in danger, despite the economic uncertainties that have hit the luxury sector hard, and the looming U.S. tariffs. 'I'm not too worried about our industry. I'm not too worried about tariffs. I would rather there be no tariffs, of course, but we can deal with these as we have done in years past,' he said. The executive confirmed that tariffs, as well as any increase in production costs, will be passed on to the customer, who is resilient enough to absorb it. The company touted its latest round of full-year results, with annual revenue at 15.2 billion euros, up 15 percent at constant exchange in 2024. The cash flow was 3.8 billion euros, up 18 percent year-over-year, while net profit was 4.6 billion euros, up from 4.3 billion euros the year prior. The results handily beat other companies such as LVMH Moët Hennesy Louis Vuitton, which saw its net profit down 17 percent, and Kering, which saw its net profit slide 62 percent. Du Halgouët said that the 2024 numbers looked like a slowdown compared to 2023, but that 'was an outlier year' due to all-time sales highs post-pandemic. The most recent year was 'more a return to normal.' Dumas also shrugged off dupes — this year's Wirkin phenomenon comes to mind — as products a discerning client can recognize. 'I'm not too worried. Our clients can feel the difference. We fight against dupes and have a great team to fight counterfeit products…[but] sometimes you are copied.' During the question-and-answer session, shareholders poked fun at the rivalry between the families that own Hermès and the Arnaults, who control LVMH, and who once made a run for Hermès. Dumas assured the audience that the Arnault family has not overstepped any shareholder declaration threshold since 2017. Another asked if Hermès might start producing in the U.S., as Louis Vuitton has done with its factories in Texas. The executive dismissed the suggestion, stating that Hermès already has a four-year plan to open new production facilities in France and will not deviate, plus the storytelling of 'Made in France' is key to the brand's success. 'It is indeed essential for us to produce where there is a story of culture and know-how that creates beautiful objects,' he said. Hermès produces some products outside of France, such as lacquer and silk, but that is only because those countries are the best in class for their categories. Other audience members carefully phrased their questions with a balance of flattery and inquiry, asking what makes Hermès stronger than other fashion companies. Dumas reflected that the company's focus on craftsmanship over branding has given it strength. He credited the last financial crisis in 2008 as raising the brand's value. 'There was a flight to quality,' he said. 'Hermès is the gold standard in a way.' He also highlighted that the company's marketing budget is small in comparison with its cash flow and conducts more personalized events rather than big campaigns, which makes it 'stand out compared to other competitors.' Rivalries aside, shareholders expressed concerns about the environment — both physical and economic — and Dumas sought to assuage their worries. One shareholder remarked on the current heat in Paris, and inquired why board members were 'traditional' and not being filled by those with eco-credentials. Dumas defended the board nominees: BNP Paribas CEO Jean-Laurent Bonnifé, diplomat Bernard Emié and Bel Group CEO Cécile Béliot-Zind, who has a background in agri-food. 'These three candidates are people who have great humanity and a very good understanding of the value of things,' he said. 'We're not expecting the supervisory board members to challenge the know-how that we already have in-house; instead, we're asking for preparedness in understanding the issues in depth [and] reflection.' Responding to a question about animal welfare and leather alternatives, Dumas said that the company is 'open' to next-gen materials such as mushroom leather and lab-grown leather, but that the products do not yet meet Hermès' standards. The challenge is getting these materials to scale, and the company is investing heavily in research and development, he added. Regarding the 6 million shares once owned by heir Nicolas Puech that are now missing, Dumas said: 'You've probably read in the media that he can't find his shares, and it's not a surprise to us. There are a number of procedures ongoing that I hope will provide some clarity.' Dumas was also asked how shareholders can better access Hermès special events, and if the brand would consider a membership club. De Seynes demurred, asking those interested to join the French Equestrian Federation if they are interested in access to horse races such as Saut Hermès. As far as arranging visits to the company's sites, 'workshops have to work,' he joked. 'We are affected, like others, by what happens. We do operate in the real world. It just so happens that we are usually affected after the others. If there is a crisis, sometimes its just a matter of time,' said Dumas. Shareholders also questioned why the company is sitting on its cash reserves, instead of disbursing it in dividends. Du Halgouët said that the large cash reserves help it better navigate lean times, such as during the pandemic. The company's 'aim is to not deal with concessions.' Still, it uses the model to enter new markets such as Indonesia, but the hope is to start with a concession and then purchase the business, as it did in UAE. The duty-free model will remain the same, Dumas said, as travel retail is not the company's expertise. But he doesn't see mass expansion in the future to continue to grow revenues, and has in fact closed stores since he joined the management team. 'We have fewer stores and more turnover. Due to the lack of stores in the right location, and it's true that often it becomes a very, very large investment, so these are large investments that we carry out thanks to our cash flow,' he added. 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Yahoo
17-04-2025
- Business
- Yahoo
Hermès Sales Growth Slows to 7.2 Percent in Q1
PARIS – Amid the luxury slowdown, Hermès International showed continued strength with sales in the first quarter up 7 percent at constant exchange rates to 4.13 billion euros. The numbers fell slightly short of analysts' expectations, which had forecast the gain at 8 percent to 4.2 billion. More from WWD Trump's Press Secretary's Dress Stirs Up Social Media in China Fashion Group International Presents Rising Star Awards to Bonnie Young, Natalia Fedner, Rex Shoes and More Brunello Cucinelli Posts Growth in Q1, Cites Solid Upward Trend in April While Hermès has outpaced its French luxury rivals such as LVMH Moët Hennessy Louis Vuitton, which reported sales down 2 percent on Monday, it marks a deceleration from the fourth quarter, when the company's sales grew 18 percent. 'In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever,' Hermès chief executive officer Axel Dumas said in a statement. 'Despite a high comparison basis in the first quarter, the group achieved solid growth in sales.' He highlighted the group's vertically integrated model as one of its core strengths. The result 'confirms a slower consumer demand environment,' Bernstein analyst Luca Solca wrote in a research note. The U.S. showed robustness, up 11 percent at constant exchange, particularly 'solid momentum' in March, even as tariff uncertainty gripped the market. Sales in Europe were up 13 percent, excluding France. Hermès' home country showed robust numbers of 14 percent growth, which the company chalked up to 'sustained local demand and dynamic tourist flows.' The Middle East continued to gain momentum, up 14 percent at constant currency, while Japan saw sales jump 17 percent in the quarter, driven by local clients. The rest of Asia proved to be the weakest point, with sales up just one percent on the continued weakness of China. For the leather goods division, sales at constant currency were up 10 percent, boosted by the new bag designs Médor and Mousqueton, while sales of its ready-to-wear continued to be a dark horse in the house, up 7 percent in the quarter. Silk and textiles, which includes the house's famous scarves, were up 5 percent, while jewelry was up 6 percent. Sales in the fragrance and beauty division were flat. Watches were the weakest link, with the category down 10 percent in the quarter, despite the introduction of two new models during the Watches and Wonders fair in Geneva, and updated version of its classic H08. The company is continuing its expansion, and will open three new production facilities in France over the next three years. Sales were up 9 percent with currency fluctuations taken into account, which boosted the company's bottom line by 49 million euros in revenue. 'In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,' the company said in a statement. 'In a more uncertain economic and geopolitical context, the group has moved into 2025 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.' Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange
