 Hermès has been steadfast in its refusal of an LVMH takeover, and took measure to increase its dividend to ward off a majority.
“We are a united family, which includes those who don’t work for the company,” Patrick Thomas, chief executive told the Financial Times. "The Hermès family does not view LVMH as a desirable shareholder, we didn’t need LVMH to take a stake for these discussions,”
 In order to keep its independence from hostile takeovers, a family holding company was created so that control would remain in their hands of the French luxury company, famous for its Birkin and Kelly bags. The decision to act came shortly after LVMH acquired a 20 per cent stake. It first acquired a 17.1 per cent share in October, which it later increased to 20.2. per cent.
Hermès raised its dividend from €1.05 in 2009 to €1.50 reported net income of €421.7m on sales of €2.4bn for 2010.
Sales growth came “essentially from Asia”, Mr Thomas told the FT, revenues in the region were up 19 per cent to €1.084bn, with strong growth coming from the Chinese market. Sales in Europe, Hermès’ second-largest market by revenue, were up 18 per cent to €900.6m.
Image: Hermes AW11
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