Luxury scarf and handbag maker Hermes reports slight fall in 2009 profit as inventories cut

Scarf maker Hermes profit falls slightly

PARIS — Luxury scarf and handbag maker Hermes International says that net profit fell slightly in 2009 as distributors cut inventories.

The Paris-based maker of fine silk scarves and Birkin leather purses reported annual net profit of euro288.8 million ($385.2 million) compared with euro290.2 million a year earlier.

The company reported last month that revenue rose 8.5 percent during the year.

Hermes opened 14 stores in 2009 and in a statement Thursday said it plans to open 12 branches this year as it continues its policy of building its own retail network.

A new store is planned on Paris’ rue de Sevres, and Hermes also intends to open a second store on Madison Avenue in New York which will be entirely dedicated to men.

Shares fell 2.4 percent to euro102.65.