TheChek News Flow

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BN 11/07 05:21 *CARREFOUR SEEKS INVESTORS TO HELP FUND MALL PURCHASE: LE FIGARO BN 11/07 05:21 *CARREFOUR PLANS TO BORROW ABOUT EU850M FOR MALLS: LE FIGARO BN 11/07 05:20 *CARREFOUR, KLEPIERRE AGREE EU1.7B PRICE: LE FIGARO BFW 11/07 05:19 *CARREFOUR IN TALKS TO BUY SHOPPING MALLS FROM KLEPIERRE: FIGARO BN 11/07 05:19 *CARREFOUR IN TALKS TO BUY MORE THAN 100 SHOPPING MALLS: FIGARO BN 11/07 05:19 *CARREFOUR IN TALKS TO BUY SHOPPING MALLS FROM KLEPIERRE: FIGARO

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Carrefour to Buy Klepierre Shopping Malls for EU1.7B: Le Figaro 2013-11-07 05:25:52.208 GMT

By David Whitehouse Nov. 7 (Bloomberg) -- Cos. are in advanced talks and have agreed a price: Le Figaro. * Carrefour plans to borrow about EU850M ($1.15B) from banks: Le Figaro * BNP Paribas, Kempen have been mandated to seek institutional investors for the rest: Le Figaro * Cos aim to finalize the deal by the end of the year: Le Figaro.

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To contact the editor responsible for this story: David Whitehouse at +33-1-5365-5059 or dwhitehouse1@bloomberg.net

After Hours Summary: OME +22.6%, DXCM +19.3%, TPX +14.7%, NVTL -23.4%, INWK -22.1%, PEIX -16.7% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: OME +22.6%, DXCM +19.3%, TPX +14.7%, FLTX +14.1%, WSTL +13%, LPSN +12.2%, AEO +12.2%, AWAY +11.7%, DVR +9.1%, MELA +8.7%, OESX +8.6%, OSUR +7.2%, ALSK +5.7%, GNK +5.7%, CPE +4.9%, MTDR +3.4%, DCTH +3.4%, ACLS +3.1%, UHAL +2.9%, RIG +2.8%, SLCA +2.6%, CONE +2.4%, JOBS +2.3%, PMTC +2.3%, CODI +2%, OAS +1.8%, PACD +1.2%, AWK +1.2%

Companies trading higher in after hours in reaction to news: MELA +8.7% (appointed Rose Crane as President and Chief Executive Officer and a Director, effective as of Nov 11th; co also reported earnings), OREX +4.7% (entered into agreement with Sanofi (SNY) to manufacture Contrave for territories outside North America), RIG +2.8% (announced construction contracts for five newbuild high-specifications jackups; co also reported earnings), TWGP +0.8% (disclosed it entered into a waiver letter, relating to the LEtter of Credit Facility Agreement)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: NVTL -23.4%, INWK -22.1%, PEIX -16.7%, PCOM -14.1%, RST -12.5%, IO -10.3%, SCTY -10%, NDLS -9.3%, WFM -8.9%, BIOS -8.6%, CKP -8%, PMT -6.1%, CECO -5.8%, G -5.1%, PRSS -5%, FOXF -4.4%, ERII -4.3%, QCOM -4.1%, EVC -4.1%, AMTG -3%, ATVI -2.4%, FTK -2.2%, CTL -2%, PDLI -1.9%, SN -1.6%, NLY -1.5%, RSOL -1.4%, MRIN -1.2%, TSO -1.1%

Companies trading lower in after hours in reaction to news: NBY -46.8% (Phase 2b clinical study of auriclosene for the treatment of impetigo did not meet its primary clinical endpoint), INCY -7.9% (announced proposed offering of $700 Million of convertible senior notes; notes to be offered in two $350 million series, due in 2018 and 2020), MRC -5.2% (announced secondary public offering of 17,489,233 shares of common stock by selling stockholders), HPT -3.7% (announced public offering of 8 mln shares of common stock), BCOV -3.3% (filed for a $100 mln mixed securities shelf offering), FET -3.3% (announced agreed sale by stockholders of 6 mln shares of common stock), KAR -2.2% (announced secondary offering of ~24 mln shares of its common stock by existing stockholder KAR Holdings II), RPT -1.5% (announced 4.5 mln share offering of common stock)

Notable after hours earnings movers: DXCM +19.3%, TPX +14.1%, AEO+ 12.3%, PEIX -21.6%, NVTL -19.2%, PCOM -14.1%

Companies trading higher after hours following earnings/guidance:

DXCM +19.3%, TPX +14.1%, AEO +12.3%, LPSN +10.9%, OME +10.7%, FLTX +9.3%, MELA+8.7%, AWAY +7.4%, OSUR +6.9%, GNK +5.7%, ALSK +4.6%

Companies trading lower after hours following earnings/guidance:

PEIX -21.6%, NVTL -19.2%, PCOM -14.1%, RST -11.2%, WFM -8.3%, NDLS -8.3%, G -5.1%, PRSS -5%, ERII -4.3%, EVC -4.1%, QCOM -4%

Closing Market Summary: Stocks End Mixed as Momentum Names Lag

The major averages registered broad gains at the open, but only the Dow Jones Industrial Average (+0.8%) and S&P 500 (+0.4%) were able to end in positive territory while the Nasdaq (-0.2%) and Russell 2000 (-0.4%) posted modest losses. The Dow finished at a fresh record high of 15,746.63 as 27 of 30 components registered gains. Of those 27, twelve added at least 1.0%. Microsoft (MSFT 38.18, +1.54) was the top index performer, climbing 4.2% amid reports Ford (F 16.91, -0.18) Chief Executive Officer Alan Mullaly remains on the list of candidates hoping to replace outgoing CEO Steve Ballmer. While Microsoft's gain had a limited impact on the price-weighted Dow, the stock provided support to the technology sector (+0.8%), which ended ahead of the remaining cyclical groups. Although the tech sector has a tendency totrade in-line with the Nasdaq, that was not the case today. The Nasdaq ended modestly lower as biotechnology and momentum names lagged. Companies specializing in biotechnology registered broad losses as the iShares Nasdaq Biotechnology ETF (IBB 201.07, -6.04) tumbled 2.9%, widening its fourth quarter loss to 4.1%. Meanwhile, momentum names like Facebook (FB 49.12, -0.98), Priceline.com (PCLN 1058.04, -24.19), and Yelp (YELP 66.61, -4.52) took a cue from Tesla's (TSLA 151.16, -25.65) weakness. The electric car maker plunged 14.5% in reaction to its cautious guidance and Q3 deliveries that were essentially in-line with Street expectations. Despite today's loss, Tesla remains higher by 346% this year. Elsewhere, the discretionary sector (-0.2%) spent the bulk of the session in the red as apparel retailers weighed after Abercrombie & Fitch (ANF 33.13, -5.18) issued below-consensus revenue guidance. Also of note, the financial sector (+0.3%) continued its recent underperformance. Despite today's modest advance, the sector is unchanged this week versus a 0.5% gain in the S&P. In addition, the sector's recent weakness has trimmed its quarter-to-date gain to 3.4%, which puts the group behind the remaining nine sectors in Q4 standings. Three of four countercyclical groups (consumer staples, telecom services, and utilities) posted solid gains between 1.0% and 1.3% while health care shed 0.3% as biotech pressured the sector. Treasuries settled near their highs, erasing a portion of yesterday's loss. The benchmark 10-yr yield slipped three basis points to 2.65%.

Participation was on the light side as only 704 million shares changed hands on the floor of the New York Stock Exchange. In today's economic data, the Conference Board's Index of Leading Indicators increased 0.7% for a second consecutive month in September. The consensus expected the index to increase 0.6%. The index will likely suffer a sizable pullback in October. Initial claims, which added 0.26 percentage points to the increase in the leading indicators, will contribute negatively in October as glitches from California and biases from the government shutdown drove claims to their highest level in several months. The weekly MBA Mortgage Index fell 7.0% to follow last week's increase of 6.4%. Separately, October Challenger Job Cuts decreased 4.2% after increasing 19.1% in September. Tomorrow, weekly initial claims and the advance Q3 GDP reading will be reported at 8:30 ET while the September Consumer Credit report will be released at 15:00 ET.

o Nasdaq +30.2% YTD o Russell 2000 +29.4% YTD o S&P 500 +24.1% YTD o DJIA +20.2% YTD

Nov 6 (Reuters) - BlackBerry Ltd's decision to accept a $1 billion cash injection from a group of investors led by Canadian financier Prem Watsa shocked other potential bidders for the smartphone maker and has left some investors crying foul. With the investment deal, BlackBerry abruptly ended an auction process that many investors had hoped would have led to a sale of the company or some of its assets, ending a long decline in its fortunes as a public company. BlackBerry has bled market share in recent years, as it struggled to compete with Apple Inc's iPhone and devices running GoogleInc's Android software. The investment deal with the Watsa-led group gives BlackBerry more time to come up with a new turnaround strategy and installs a respected industry executive to lead the charge. BlackBerry CEO Thorsten Heins was ousted, and John Chen, credited with turning around Sybase Inc in the late 1990s, took the helm on an interim basis. But investors are skeptical that time will solve the company's problems. BlackBerry has failed to win back customers despite refreshing its softwareand launching a new line of its once ubiquitous phones. They say the only person who can benefit from the deal is Watsa, who over the years has built a reputation as a shrewd investor, attracting comparisons to U.S. billionaire Warren Buffett, who often presented himself to companies as lender of last resort. "Watsa didn't get where he is by paying retail, he knows how to pay wholesale prices," said Ross Healy, a portfolio manager with MacNicol & Associates whose clients own shares in BlackBerry. Healy said most shareholders were disappointed, but he still hoped the company can turn its fortunes around. Watsa, the chairman of Financial Holdings Ltd, said in an interview on Monday that the "for sale" sign at BlackBerry was coming down. "The company is now being run for the long-term, it is financed very well so that it can be run for the long-term, if not we wouldn't be putting this money in," he said. Watsa, who had stepped down from the board to pursue a bid for the company and is already BlackBerry's largest shareholder, returns as the lead independent director. BIDDERS SHOCKED Sources familiar with the matter said at least one bidding group, which included BlackBerry founders Mike Lazaridis and Douglas Fregin, had sent a letter to BlackBerry over the weekend expressing interest in the company and asking for more time to finalize a bid. The consortium, which also included private equity firm Cerberus and mobile chip giant Qualcomm and was backed by Goldman Sachs Group Inc, was confident it could secure the necessary financing but found BlackBerry uncooperative in providing key information, including on its government contracts and intellectual property portfolio, the sources said. The group was surprised on Monday morning to find that the process had ended. It is evaluating options for its next move, the sources said. Spokespeople for the participants of the consortium declined to comment. Other sources familiar with BlackBerry's board's thinking said it moved ahead with Watsa's financing proposal because Cerberus and its partners did not have a complete proposal with the required financing in place. These sources said that all the strategic and financial players that delved into the company's books were aware of Monday's bid deadline, and that the board opted for the best deal put before it within the timetable laid out. A BlackBerry spokesman said the company was confident that it had run a robust strategic alternatives review process and the Watsa deal was in the best interest of its shareholders. WATSA'S DEAL People familiar with Watsa's efforts to raise buyout financing for his original, tentative $4.7 billion bid for BlackBerry said on Friday that Fairfax had been turned down by several large banks over concerns that the smartphone maker will not be able to reverse its fortunes. By some measures, Watsa struck a good deal for himself by changing course and buying the company's debt rather than acquiring it outright. Fairfax will get $250 million of the seven-year unsecured subordinated debentures issued by BlackBerry, which have a coupon of 6 percent. The coupon, which is akin to that seen in recent junk bond issues, reflects the risk but is still an attractive yield at a time of record low interest rates. With BlackBerry having no debt before this deal, the bonds offer Watsa more protection should the company go bust but also promise profits should it recover. They can be converted into BlackBerry common shares at $10 each. At that price, the deal would also reduce Watsa's investment cost in BlackBerry. Fairfax paid an average of $17 per share to build its 9.9 percent stake in the Canadian company over the last three years. Watsa and the other bond investors have an option to increase the investment by $250 million. "BlackBerry is hemorrhaging employees, it is hemorrhaging customers. The only thing that's growing is doubt," said John Stephenson, a senior vice president at First Asset Investment Management and one of BlackBerry's disgruntled investors.

McKesson/Celesio - Confusion on Elliot involvement overblown; ISI Group sees little to no impact to deal economics

ISI notes Celesio's stock price rose above €23 in today's trading, giving credence to the possibility that MCK would raise its offer price in response to a petition by Elliott. We believe that if Elliott does take action, the investor's argument will be over the high level of accretion and the positive MCK stock reaction, which argue for a higher value for Celesio shares. Ultimately this is major noise but it has ZERO impact on the financial merits of this deal and has not impacted other examples historically.

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MORE: Hermes 3Q Total Sales, Leathergoods Constant FX Sales Miss 2013-11-06 15:47:45.90 GMT

By Heather Burke Nov. 6 (Bloomberg) -- Hermes 3Q total sales EU895.5m, est. EU908m (median of 9). * 3Q total sales growth constant FX up 12.9%, est. 13.4% (median of 9) * 2013 growth objective for rev. at constant FX may exceed 11% * Previous outlook: Sales at constant FX could “slightly exceed” mid-term growth target of 10% * Depending on FX fluctuations, 2013 current op. margin could be close to historical high achieved in 2012 (32.1%) * 3Q total Europe sales growth constant FX 10.5%, est. 12.3% * 3Q Japan sales growth constant FX 5.8%, est. 6.5% * 3Q Asia Pacific sales growth constant FX 16.4%, est. 17.5% * 3Q Americas sales growth constant FX 17.6%, est. 14.5% * 3Q Leathergoods and Saddlery sales growth constant FX 8.4%, est. 11% * 3Q ready-to-wear sales growth constant FX 18.9%, est. 18% * 3Q Silk and Textiles sales growth constant FX 12.7%, est. 12% * Shrs down 0.3%, earlier up as much as 1.3% * Preview here: NSN MVU93U6K50ZI <GO> * Earlier story: NSN MVULZZ6JIJVC <GO> * Statement: NSN MVULN83PR6RL <GO>

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

To contact the reporter on this story: Heather Burke in London at +44-20-7673-2044 or hburke2@bloomberg.net

To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

Quant funds suffer dismal ‘QE’ losing streak

How does a hedge fund react to losing a quarter of its investors’ money in a matter of months?

Double-up? Blow up? Or buy Lego and wait?

Cantab Capital, a multibillion-dollar quant hedge fund, run by computers (or rather, run by maths geeks who run computers) went for option three. The irreverent – and until this year, highly profitable – Cambridge-based firm, set up by Goldman Sachs’ former head of quantitative trading, spent £2,000 on Lego to boost staff morale this summer after a painful losing streak struck hundreds of millions off its trading portfolio’s value. Cantab’s travails speak for a vast swath of the $2.5tn hedge fund industry: so-called managed futures funds, which use computer models to spot and ride trends in global futures markets, have had a dreadful ten months. And perhaps the best thing they should do is nothing at all. According to data provider Hedge Fund Research, the average managed futures fund lost about 3.7 per cent in the first three quarters of 2013. October has been a good month, say industry insiders – but not good enough to pull managed futures managers back into the black. In any case, the medium-term story is grim too. Managed futures funds have made their investors money in only one of the four previous years (2010). It is a losing streak that would give anyone pause for thought. And the question that seems to rise time and again is: is the managed futures model broken? For Man Group, the world’s second-largest hedge fund manager, this questioning – and the stuttering of its huge flagship managed futures fund AHL – has utterly destroyed shareholder confidence in the company. London-listed Man used to be in the FTSE 100. In mid-2008, it had a market capitalisation of $20bn. Now it is $2.5bn. The stakes are therefore high. There are two things the managed futures model needs to do well: uncorrelated markets and markets that move with sustained momentum for a given period of time. This is logical enough since, in its most simple incarnation, a managed futures fund bets on anything that is exhibiting a price trend – let’s say, three days of falls – and it does this in dozens of different markets. Diversification helps it to iron out volatility. Herein lies the problem. For it is almost as if central bankers, policy makers and politicians had consciously developed a set of responses to the financial crisis perfectly calibrated to mess with managed futures-style trading. Firstly, if one was being uncharitable, one could point out that the historical returns from managed futures funds were bolstered in part thanks to income from the large cash hoards they held. As firms which primarily, if not exclusively, trade futures contracts, interest from treasuries or cash-like securities they kept as collateral was an easy source of return. In the current zero-interest rate environment this is anything but the case. Secondly and probably more importantly though, the very fundamentals of the managed futures trading style has been disrupted. High correlations between markets and choppy, but ultimately rangebound movements within those markets mean most managed futures models keep tripping up. Take one, very simplified example: a computer might have hopped on to a falling euro contract, for example, only to get suddenly caught out by an announcement by Mario Draghi that panicked investors. The same computer might then have gone long the contract only to get hit as once again sentiment turned on eurozone cohesion a week later. But while this is an intractable problem, it is also surmountable. When QE ends, fund managers reason, there will be nothing to stop the computers churning out big returns once more. Cantab’s financial modellers are not the only ones sanguine enough about their condition to go out and buy toys. Senior figures at all of the world’s biggest quant funds – AHL, Winton Capital, or BlueCrest’s BlueTrend – believe that nothing is fundamentally wrong with the way they trade. All of which points to an attitude that many hedge fund investors would do well to learn from too: have conviction, and don’t go chasing returns. A wave of money flowed into managed futures funds in 2009 and 2010 after many spectacularly beat the market in 2008. Now a wave of money is flowing out. If the US Federal Reserve makes good on its well-telegraphed promise to scale back its programme of quantitative easing next year, then this could be precisely the moment at which the worm turns for managed futures funds. In the meantime, sources tell the Financial Times, work on Cantab’s Lego Death Star is ongoing.

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BN 11/06 15:29 *HERMÈS SEES ANNUAL GROWTH CONSOLIDATED REV EXCEEDING 11% BN 11/06 15:28 *HERMÈS: JAPAN CONFIRMED POSITIVE TREND SEEN IN 1H OF YR BFW 11/06 15:28 *HERMÈS INTL. 3Q CONSOLIDATED REV 2,662.7M BN 11/06 15:28 *HERMÈS IN 4Q WILL CONTINUE TO FOLLOW LONG-TERM STRATEGY BN 11/06 15:28 *HERMÈS INTL. 3Q CONSOLIDATED REV EU2.66B BN 11/06 15:28 *HERMÈS FINE MOMENTUM CONTINUED IN NON-JAPAN ASIA, IN AMERICAS BN 11/06 15:28 *HERMÈS INTL. 3Q CONSOLIDATED REV 2,662.7M BN 11/06 15:28 *HERMÈS INTL. 3Q '13 SALES

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Hermès International: 3rd quarter 2013 sales 2013-11-06 15:28:20.965 GMT

Hermès International: 3rd quarter 2013 sales

HERMES

Quarterly information report to the end of September 2013

Solid improvement of sales in the third quarter (+12.9% at constant exchange rates)

Paris, 7 November 2013

As at end of September, the group's consolidated turnover amounted to €2,662.7 million, an improvement of 13.9% at constant exchange rates. After taking into account the negative currency impact, primarily due to a weaker yen, growth was to 9.1%.

In the third quarter, sales grew by 12.9% at constant exchange rates (+5.5% at current exchange rates). The increase continues to be noteworthy both in the group's stores (+12.9% at constant exchange rates) and in wholesale channels (+12.6% at constant exchange rates).

Activity as at end of September by geographical zone (data at comparable exchange rates unless indicated otherwise)

As at end of September 2013, sales grew in all geographical zones:

* Fine momentum continued in non-Japan Asia and in the Americas (+17%); 

* France (+12%) and Europe excluding France (+14%) posted an excellent performance; 

* Japan confirmed the positive trend seen in the first half of the year (+7%). 

In the third quarter, Hermès continued the qualitative development of its distribution network. China and Japan opened two new stores, respectively in Ningbo and Nagoya Mitsukoshi. In the United States, the Beverly Hills store was inaugurated in September after being enlarged and renovated, and after the building's acquisition in late 2012.

Activity as at end of September by sector (data at comparable exchange rates unless indicated otherwise)

Demand for Hermès products continues to be supported by the House's creative momentum, and the excellence of its know-how.

The Leather goods and Saddlery division (+9%) continued its qualitative growth as well as the progressive development of its production capacities, with the ramp-up of the new manufacturing plants in Isère, Charente and Franche-Comté.

The ready-to-wear and Accessories sector (+20%) posted a remarkable performance and is benefiting from the richness of  ready-to-wear, fashion accessories and footwear collections.

The Silk and Textiles sector (+13%) posted excellent results thanks to the abundance and density of its collections.

Perfumes (+15%) are building on the development of the flagship line Terre d'Hermès while benefiting from the Jour d'Hermès launch at the start of the year.

Watches (+1%) returned to growth but continues to be affected by the slowdown seen in the early part of the year in the Chinese market, and by a very high comparison basis from last year.

The other Hermès sectors increased sharply (+38%) thanks to the vitality of the jewellery sector and the singular nature of the offerings from Hermès home products.

Significant events in the third quarter

As at end of September, the evolution of currency exchange rates generated a negative impact of €116 million on the turnover.

Hermès International did not buy back any shares during the third quarter, other than shares traded under the liquidity contract.

Outlook

In view of the sales generated over the first nine months, the annual growth objective for the consolidated turnover, at constant exchange rates, could exceed 11%. Depending on exchange rate fluctuations, current operating margin could be close to the historically high level reached in 2012 (32.1%).

During the fourth quarter, Hermès will continue to follow its long-term strategy based on creativity, fantasy, mastering its know-how, developing its distribution network, strengthening its production capacities and securing its sources of supply.

With its annual theme "Chic, le sport !" (A sporting life!), Hermès is clearly focusing on energy and optimism for the end of 2013. Since its origins, the House has been tapping the sports universe to feed its passion for movement, elegance and values of excellence. For Hermès, sport conveys spirit, style and pleasure before all else, and is more than ever expressed in our collections.

INFORMATION BY GEOGRAPHICAL ZONES (1)

As of Sept 30th Evolutions At constants exchange In millions of Euros 2013 2012 Published rates France 433,6 388,7 11,5% 11,6% Europe (excl. France) 521,0 465,0 12,0% 13,5% Total Europe 954,6 853,7 11,8% 12,6% Japan 329,6 381,5 (13,6)% 7,2% Asia Pacific (excl. 895,4 781,6 Japan) 14,6% 16,7% Total Asia 1 225,1 1 163,2 5,3% 13,6% Americas 436,7 384,3 13,6% 16,9% Other 46,3 38,8 19,4% 19,7% TOTAL 2 662,7 2 440,0 9,1% 13,9%

3rd quarter Evolutions In millions of Euros 2013 2012 Published At constants exchange rates France 144,4 132,9 8,7% 8,7% Europe (excl. France) 174,1 158,6 9,8% 12,0% Total Europe 318,5 291,5 9,3% 10,5% Japan 108,2 134,7 (19,6)% 5,8% Asia Pacific (excl. Japan) 304,2 274,8 10,7% 16,4% Total Asia 412,4 409,5 0,7% 13,0% Americas 150,7 135,5 11,2% 17,6% Other 13,9 12,2 13,5% 13,9% TOTAL 895,5 848,6 5,5% 12,9%

(1) Sales by destination.

INFORMATION BY SECTORS

As of Sept 30th Evolutions At constants In millions of Euros 2013 2012 Published exchange rates Leathergoods and Saddlery (1) 1 163,0 1 124,5 3,4% 9,4% Ready-to-wear and fashion 612,0 527,9 accessories (2) 15,9% 20,2% Silk and Textiles 300,8 276,3 8,9% 12,9% Other Hermès sectors (3) 148,3 111,8 32,6% 37,5% Perfumes 157,8 138,6 13,9% 14,6% Watches 117,6 120,8 (2,6)% 1,2% Tableware 41,9 41,5 1,1% 4,0% Other products (4) 121,1 98,6 22,9% 26,0% TOTAL 2 662,7 2 440,0 9,1% 13,9%

3rd quarter Evolutions At constants exchange In millions of Euros 2013 2012 Published rates Leathergoods and Saddlery (1) 383,1 385,0 (0,5)% 8,4% Ready-to-wear and fashion 216,4 193,2 accessories (2) 12,0% 18,9% Silk and Textiles 99,1 93,4 6,1% 12,7% Other Hermès sectors (3) 53,6 42,4 26,5% 33,8% Perfumes 51,1 49,2 3,9% 5,1% Watches 42,7 42,9 (0,5)% 5,3% Tableware 13,0 13,4 (3,1)% 1,4% Other products (4) 36,4 29,1 25,2% 30,1% TOTAL 895,5 848,6 5,5% 12,9%

(1) Leathergoods & Saddlery include bags & luggages, horse riding, memory holders and small leather goods. (2) Ready-to-wear and fashion accessories include ready-to-wear, men and women, belts, accessories jewellery, gloves, hats and Hermès shoes. (3) Other Hermès sectors include jewellery and products of the art of living department. (4) Other products include John Lobb shoes as well as production activities realized for third parties (textile printing, perfumes, tanning,.).

REMINDER OF PREVIOUS PUBLICATIONS

INFORMATION BY GEOGRAPHICAL ZONES (1)

2013 2012 In millions of Euros Q1 Report Q2 Report S1  report Q1 Report Q2 Report S1  report France 137,9 151,3 289,2 123,6 132,2 255,8 Europe (excl. 168,2 178,7 346,9 150,6 155,8 306,4 France) Total Europe 306,1 330,0 636,1 274,2 288,0 562,2 Japan 110,3 111,1 221,4 119,9 127,0 246,9 Asia Pacific 292,0 299,2 591,2 248,1 258,8 506,8 (excl. Japan) Total Asia 402,3 410,3 812,6 368,0 385,7 753,7 Americas 133,0 153,1 286,1 120,6 128,2 248,8 Other 15,4 17,1 32,4 14,1 12,5 26,6 TOTAL 856,8 910,4 1 767,2 776,9 814,5 1 591,4

(1) Sales by destination.

INFORMATION BY SECTORS

2013 2012 Q2 S1 Q1 Q2 S1 In millions of Euros Q1 Report Report  report Report Report  report Leathergoods and Saddlery 372,5 407,4 779,9 358,4 381,0 739,5 Ready-to-wear and fashion 187,8 207,8 395,6 161,5 173,3 334,7 accessories Silk and Textiles 105,0 96,6 201,7 92,7 90,3 182,9 Other Hermès sectors 46,6 48,1 94,7 31,7 37,7 69,5 Perfumes 57,8 48,9 106,7 49,1 40,3 89,4 Watches 34,5 40,4 74,9 37,1 40,7 77,8 Tableware 13,5 15,4 28,9 14,0 14,1 28,0 Other products 39,1 45,7 84,7 32,4 37,1 69,5 TOTAL 856,8 910,4 1 767,2 776,9 814,5 1 591,4

(1) Leathergoods & Saddlery include bags & luggages, horse riding, memory holders and small leather goods. (2) Ready-to-wear and fashion accessories include ready-to-wear, men and women, belts, accessories jewellery, gloves, hats and Hermès shoes. (3) Other Hermès sectors include jewellery and products of the art of living department. (4) Other products include John Lobb shoes as well as production activities realized for third parties (textile printing, perfumes, tanning,.).

3rd quarter 2013 sales

Telefonica SA Said to support Telecom Itlalia capital raise as looks towards a sale in 2014 - press