Hermès announced on October 24th in its third-quarter earnings report that sales increased by 11.3% compared to the same period last year. This serves as further evidence of Hermès’ exceptional brand strength, continuing its stable growth even as other luxury brands face challenging conditions.
During the past three months, Hermès recorded total sales of €3.7 billion (approximately $3.99 billion), achieving 11.3% growth when excluding currency fluctuations compared to the same period last year. As of the end of September 2024, the company’s total sales reached €11.2 billion, maintaining a steady growth trajectory.
Strong Global Market Growth
Hermès reported growth across all regions, reaffirming the brand’s market strength. The following regions demonstrated particularly strong performances:
- United States: A 13% year-on-year growth, driven by the opening of a new store in Princeton, New Jersey, and the expansion of online sales into the Mexican market.
- Japan: An impressive 23% growth, supported by the opening of a new store in Ginza Mitsukoshi, Tokyo, which has been well-received by local customers.
- Europe: An 18% increase, fueled by a recovery in tourist activity and rising local demand.
Growth by Product Line and Future Outlook
Hermès continues to see growth across its diverse product lines. The “Leather Goods & Saddlery” division, which includes popular new bags like the Constance Élan and Bolide à dos, grew by 17%, driven by innovative designs. The fashion division also performed well, with a 15% increase following the successful presentation of the 2025 Spring/Summer collection.
Although the Silk and Watches divisions experienced a slight slowdown, Hermès’ stable business model ensures consistent growth across sectors.
Sustainability and Future Vision
Regarding sustainability, Hermès has made notable efforts, including opening a new leather goods workshop in Lyon, France, and establishing the École Hermès des savoir-faire to train local artisans. The company has also received high ratings from S&P and MSCI, reflecting the brand’s commitment to sustainability.
The Exclusivity of Hermès and Its Support Among the Affluent
Hermès has long maintained its status as a luxury brand by offering high-quality, classic products, while also strictly managing its supply chain to enhance its exclusivity. As a result, items like the Birkin bag, priced over $10,000, continue to enjoy enduring popularity among the global elite.
Axel Dumas, Executive Chairman of Hermès, commented, “In a more uncertain economic and geopolitical context, I want to thank all employees for the robust third-quarter performance, and our customers for their loyalty. Thanks to the singularity of its model, Hermès is continuing its recruitments and long-term investments.”
Other Brands Struggle
In contrast, other major luxury conglomerates have not fared as well. French conglomerates LVMH (Moët Hennessy Louis Vuitton) and Kering also announced their third-quarter results for 2024 in recent days, but their performances were less encouraging.
LVMH reported third-quarter sales of €19.076 billion (approximately $21.0 billion), but its organic sales declined by 3%. On October 23, Kering announced a 16% year-on-year decline in sales for the third quarter, highlighting the difficulties faced by the group’s brands, including Gucci and Saint Laurent, in navigating challenging market conditions.