Hermes continues to improve the quality of its sales network globally. In 2015, sales in all regions maintained growth. In the first nine months of this year, the Japanese market grew strongly (an increase of 18%); the Asian markets other than Japan grew (an increase of 5%), although sales in Hong Kong and Macau In the face of difficulties, sales in mainland China continue to grow; the US market continues to grow (a 7% increase).
At the end of 2015, Hermès opened its Miami store in the United States. Houston and Dallas stores expanded and refurbished; the European market performed well in all the group's stores (an increase of 9%), and it was sold in the Bond Street store in London and the Moscow State Department Store. This is especially obvious after the shop has been renovated. Although France suffered from the adverse events at the end of the year, sales still maintained considerable growth (an increase of 6%). Thanks to extraordinary innovation capabilities, sales in all departments have maintained growth. Sales of the leather and saddlery division continued to grow due to constant demand (up 13%). Two additional factories were opened in Isère and Charente-Maritime in France, as well as in Erice (Héricourt) a new plant has greatly increased its production capacity. Investment in a second new plant in Franche-Comté is also underway.
The outstanding performance of the garment and accessories department (an increase of 8%) was mainly due to the success of the latest series of ready-to-wear, especially Nadège Vanhée-Cybulski's first ready-to-wear collection and fashion accessories series, especially footwear products. The Silk and Textiles Department (a decrease of 1%) was negatively affected by the adverse events in France at the end of the year and the slowdown in the Greater China market, but still maintained growth in other markets.
Perfume department sales continued to grow (up 3%), thanks to the success of "Terre d'Hermès" men's fragrance (Terre d'Hermès) and the new products of the garden series and the Hermès collection. For comparison, in 2014, the "Hermès Light" pure fragrance feminine fragrance (Jour d'Hermès Absolu) and the "Hermès Land" men's Eau de Toilette (Terre d'Hermès eau très fra.che) were launched. In the overall downturn of the watch industry, the performance of the watch sector is still not optimistic, especially in Asian markets outside of Japan. The continued steady growth of Hermès' other product categories (increased by 9%) was mainly due to the outstanding performance of the gold jewellery series and the continuous development of the home furnishing series. Operating profit margin increased, accounting for 31.8% of sales. Recurring operating income reached 1.541 billion euros, an increase of 19% from 2014's 1.299 billion euros. Despite the dilution of exchange rate fluctuations, operating profit margin increased by 0.3 percentage points from 2014 , Accounting for 31.8% of sales.
After accounting for increased taxes and fees, especially in France, the group's total consolidated net income reached 973 million euros, an increase of 13.2%. Cash flow increased by 16% to 1.218 billion euros, which can meet all investment (267 million euros), working capital changes (31 million euros), dividend distribution (308 million euros) and special dividend distribution (522 million euros) requirements. As of December 31, 2015, net cash amounted to 1.571 billion euros, compared with 1.422 billion euros in the same period in 2014. In 2015, the Hermes Group spent 3.5 million euros to repurchase 10,539 shares of the group, excluding share transactions under the framework of the liquidity contract.
The Hermes Group has created nearly 500 new jobs, of which about 400 new jobs have been added in France, mainly in the production and sales departments. At the end of 2015, the total number of employees in the group reached 12,244, of which the number of employees in French companies accounted for 7,461. Looking forward to 2016, based on the success of its unique business model, Hermès will continue to adhere to a long-term strategy based on creation and innovation, and will maintain the control of proprietary technology and hold unique market events on a regular basis. As mentioned in the sales report released on February 10, 2015, the Group is still committed to the 2016 growth rate of 8% at a fixed exchange rate, despite the uncertain factors of economy, geopolitics, monetary policy and other aspects around the world. Mid-year sales performance target. In 2016, Hermès took the theme of "Ride Between All Things in Nature" as the year's theme. Through the first guest of Hermès, the horse, Hermès was inspired, full of praise and respect, and established a sincere and profound connection with nature. Hermes will submit a dividend distribution proposal to the shareholders meeting on May 31, 2016, with a proposed dividend of 3.35 euros per share. The interim dividend paid on February 26, 2016 will be 1.50 euros per share, which will be deducted from the dividend approved by the general meeting of shareholders.
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