Hermès confirms his leading position in the luxury industry with its annual results for 2024. In an insecure economic and geopolitical environment, the group records double -digit growth in both sales and profitability and thus underlines the relevance of its manual and exclusive business model.
Hermès’s consolidated sales amount to 15.2 billion euros – an increase of 15 percent in constant exchange rates, the luxury goods group said on Friday. Adjusted to change exchange rate changes, the proceeds grew by 23 percent. The recurring operational result reaches 6.2 billion euros, which corresponds to 40.5 percent of sales – an increase of nine percent compared to the previous year. The group’s net profit increases by seven percent to 4.6 billion euros, which corresponds to a margin of 30.3 percent.
Growth in all regions
Hermès continues his international expansion by further strengthening the sales network and building on a loyal customer. This strategy is reflected in robust growth in all regions in which the house is represented.
In Asia (without Japan), sales increased by seven percent in the year and accelerates in the fourth quarter to plus nine percent – despite a decline in customers: inside in mainland china. In particular, growth drivers were the opening and renovation of several boutiques, including locations in Beijing and Shenzhen, which further expanded the presence in this strategically important market. After an increase in sales of ten percent in the first half of 2024, the dynamics slowed down before attracting it again at the end of the year.
The group in turn recorded an increase of 23 percent percent in Japan. The opening of new boutiques in Tokyo, especially in Ginza and Azabudai Hills, played a key role in this development. Compared to the results of the first half of 2024, in which growth was already 22 percent, the dynamics remain at a high level.
In America, Hermès increases its sales by 15 percent-supported by the continuing strength of the US market. The strategic renovation of several boutiques, especially in Atlanta and Princeton, contributed significantly to this development. This acceleration exceeds the already strong growth of 13 percent in the first half of 2024. Even in Europe, France excluded, Hermès records an increase in sales of 19 percent, driven by high local demand and by an increase in tourism. The dynamics intensified compared to the first half of 2024, in which growth was 18 percent.
In France, sales grow by 13 percent and thus confirms the strong demand from local customers: inside and tourist: inside. This growth was favored by the reopening of the boutique in Nantes and the opening of a new boutique in Lille. The growth is slightly below the 15 percent of the first half of the year 2024, but overall remains on a positive trend.
Development of the categories
The collections in the field of clothing and accessories record growth of 15 percent, supported by the continued success of the prêt-à-porter and shoe lines. This trend corresponds to the growth of the first half of the year 2024. The silk and textiles segment increases by four percent – a significant improvement after a behavioral first half of the year (+1 percent). This acceleration signals a new demand for these products.
As the only segment with a declining trend, the watch division records a decline in sales of four percent, which reflects the difficult market situation in this category. This development confirms the stagnation, which was already observed in the first half of the year.
A sustainable and responsible model
Hermès continues to invest in sustainable development and the expansion of his team. In 2024, the group hired 2,300 new employees, including 1,300 in France, which increases the workforce to over 25,000 employees.
As part of social policy, a bonus of 4,500 euros will be paid to all employees of the group in early 2025. In addition, Hermès has further strengthened his initiatives to promote diversity and inclusion, with a direct employment rate of 7.12 percent for people with disabilities.
Dividend and outlook for 2025
The Board of Directors will propose a dividend of 16.00 euros per share to the Annual General Meeting on April 30, 2025, including a special dividend of EUR 10.00.
Despite economic and geopolitical uncertainties, Hermès starts with confidence in 2025 – based on the solidity of his manual business model, his exclusive sales network and the creative excellence of his collections.
This article previously appeared on fashionunited.fr and was used with the help of digital tools translated.
Fashionunited uses artificial intelligence to accelerate the translation of articles and improve the end result. They help us make the international reporting of fashionunited a German -speaking readership quickly and comprehensively accessible. Articles that have been translated using AI-based tools are read and carefully edited by our editor: Correcting inside before they are published. If you have any questions or comments, please contact me by email to [email protected]