On February 14, Hermès announced its Q4 2024 and full-year results, demonstrating strong growth despite the ongoing stagnation in the luxury market. The company’s Q4 revenue reached €3.96 billion, marking an 18% increase at constant exchange rates (CER). The United States and Japan stood out as key drivers of this growth, recording significant sales increases.
Executive Chairman Axel Dumas commented, “In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the Hermès model and the agility of the house’s teams, whom I thank warmly. While preserving the group’s major balances and its responsibility as an employer, the house is staying the course, attached more than ever to its fundamental values of quality, creativity and savoir-faire.”
Leather Goods and Ready-to-Wear Continue Strong Growth
Hermès’ Leather Goods & Saddlery division, which accounts for nearly half of the company’s revenue, saw a 21.5% increase (reaching €1.669 billion). The sustained demand for high-end handbags was crucial in driving this growth.
Similarly, the Ready-to-Wear & Accessories division remained strong, achieving a 17.4% increase (€1.108 billion). Other divisions also recorded positive year-over-year growth, including Silk & Textiles (+7.3%), Fragrances & Beauty (+16.9%), and Watches (+2.6%).
Regional Performance Highlights
France recorded an 11.8% increase by region, while Europe (excluding France) grew by 20.7%, reflecting steady demand. However, the standout performers were Japan and the United States, with Japan growing by 22.4% and the U.S. by 22.3%, both contributing significantly to the company’s Q4 performance.
The Middle East also demonstrated remarkable growth, soaring by 123.2%, further solidifying Hermès’ presence in the region.
Full-Year Performance Reflects Continued Strength
For the full year, Hermès’ revenue reached €15.2 billion, reflecting a 15% increase at CER and 13% at current exchange rates. Recurring operating income rose to €6.2 billion (40.5% of revenue), while net profit increased by 7% year-over-year to €4.6 billion.
Annual Growth by Business Segment
- Leather Goods & Saddlery: +18.3%
- Ready-to-Wear: +15.4%
- Silk & Textiles and Fragrances & Beauty: Continued steady growth
- Watches: Decreased by 4.2% for the full year, but showed signs of recovery in Q4
Store Expansions and Production Capacity Growth
One of the key factors driving Hermès’ continued growth was its strategy of opening new stores and renovating existing locations. In 2024, the company expanded its presence in major cities, including Atlanta, Princeton, and Ginza, reinforcing its retail footprint.
Additionally, to meet the rising demand for leather goods, Hermès is further expanding its production capacity and planning to open new workshops in France.
Looking ahead, Hermès stated that despite economic, geopolitical, and financial uncertainties, it remains committed to its ambitious goal of revenue growth at constant exchange rates. The company reaffirmed its strategy for 2025, emphasizing its highly integrated craftsmanship model, well-balanced distribution network, creative collections, and strong customer loyalty as key drivers of future success.
Furthermore, Hermès has announced “Drawn to Craft” as its 2025 theme, underscoring its dedication to elevating the value of craftsmanship and artisanal excellence.
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