Luxury Figures
Hermès reports strong increase in results for 2024
The Hermès group has announced record results for 2024, with consolidated sales of 15.2 billion euros, a significant increase of 15% at constant exchange rates. Leather goods and saddlery and the Ready-to-Wear and Accessories division are the two sectors that have been the driving force for the group, recording increases of 18% and 15%, respectively.
On the announcement of the results on 14 January 2025, Axel Dumas, Hermès's managing director, praised the strength of the brand's model: ‘In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results testifies to the strength of the Hermès model and the agility of its teams, whom I warmly thank. While preserving the group's major balances and its responsibility as an employer, the company is staying the course, more committed than ever to its fundamental values of quality, creativity and expertise.’
The group has remained strong, even in Asia outside Japan, where store renovations and expansions have been completed. In China, the MixC mall store in Shenyang reopened after expansion in December, following the Luohu district store in Shenzhen in October and the Beijing SKP store in May. Note the 8.9% increase in the 4th quarter. Japan remains the market with the strongest growth recorded over the year, with a 22.5% increase in sales. The United States (+15%) and Europe (+19% excluding France) follow closely behind. France, a long-standing market, recorded an increase of 13%.
At the end of December 2024, all the businesses, except watchmaking, posted solid growth, driven by the company's value strategy and increased production capacity. In this respect, the leather goods and saddlery business benefited in 2024 from the opening of a production site in Riom in September, in France, employing 280 artisans. Three new leather goods companies will open in the next three years: L'Isle-d'Espagnac (Charente) in 2025, Loupes (Gironde) in 2026 and Charleville-Mézières (Ardennes) by 2027.
The Clothing and Accessories division grew by 15%, thanks to the success of the men's and women's ready-to-wear collections and the shoes.
Watchmaking is the only sector in decline, with a drop of 4%, a sector that is facing a decline in demand overall, particularly in China. It should be noted that the 4th quarter saw watchmaking recover to +3.2%.
Overall, the group has continued its recruitment policy, hiring 2,300 new employees, bringing Hermès's worldwide workforce to over 25,000.
In the official press release, the group remains confident and ambitious: ‘Despite economic and geopolitical uncertainties, the group confirms an ambitious target for revenue growth at constant rates.
By way of comparison, the other major luxury groups are reporting much more modest results, such as LVMH, whose turnover in 2024 was up 1% at 84.7% compared with 2023, while Kering's fell by 12% to 17.1 billion.
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