Hermès, the renowned ultra-luxury brand, has recently announced impressive sales and financial results for the year 2023 and the fourth quarter. The company experienced a notable increase in revenue, reaching €13.4 billion for the year, which equates to a 16% growth. The growth was even more impressive at constant exchange rates, with a remarkable 21% increase. Furthermore, Hermès witnessed a 20% rise in recurring operating income, amounting to €5.7 billion, and a considerable surge of 28% in net profit, totaling €4.3 billion.
Despite facing a challenging comparison base in both America and Asia, Hermès managed to achieve a significant 13% growth in Q4 sales, totaling €3.364 billion (18% CER). Axel Dumas, the Executive Chairman, emphasized the brand’s uniqueness and exceptional performance across all regions and sectors. He attributed their success to the desirability of their collections and the exceptional talent of their employees.
At the end of December, all regions displayed solid performance with consistent growth of around 20%. Hermès stores experienced a commendable 20% increase in sales, driven by strong demand and an expanded distribution network. Wholesale sales also saw a considerable rise of 24%, propelled by the travel retail business.
Asia, excluding Japan, witnessed a remarkable 19% growth in sales, with all countries experiencing significant increases. The region benefited from an expansion in selling space, including the opening of a new store in Chengdu, China, and the reopening of the store at the Shilla Hotel in Seoul, Korea. Sales in Japan grew by 26%, fueled by steady and sustained growth as well as the opening of new stores in Sapporo and Kyoto.
In America, sales rose by 21%, primarily driven by investments in stores. The opening of new stores in Chicago, Las Vegas, Naples, Aspen, and Los Angeles contributed significantly to this growth. Europe also performed exceptionally well, with a notable 20% increase in sales both in France and the rest of the continent. Hermès attributed this robust growth to the loyalty of local clients and tourist flows, with renovated stores in Crans-Montana, Bordeaux, and Vienna also playing a vital role in achieving such positive results.
The company’s various business sectors, known as métiers, also demonstrated significant momentum. Leather Goods and Saddlery recorded a 17% increase, Ready-to-wear and Accessories saw a remarkable growth of 28%, Silk and Textiles experienced a 16% rise, Perfume and Beauty achieved a respectable 12% growth, Watches witnessed a significant increase of 23%, and Other Hermès sectors achieved outstanding growth of 26%.
Looking ahead, despite economic, geopolitical, and monetary uncertainties worldwide, Hermès remains determined to achieve ambitious goals for revenue growth at constant exchange rates. The brand is confident in its ability to continue delivering exceptional performance in the long term.
[Useful Links] – To learn more about Hermès and its products, visit their official website here.– For news and updates on luxury brands and the fashion industry, check out this credible fashion news site here.
