Luxury brand Hermès has reported impressive financial results for the past year, with a revenue of €11.6 billion ($13.8 billion), representing a 23% increase at constant exchange rates. The company’s net profit also saw a significant rise of 38%, reflecting the solid performance of Hermès, which has invested in its production units and retail network.
Hermès experienced strong demand both in France and internationally. Sales in Asia (excluding Japan) increased by 22% last year, with the Asia-Pacific region accounting for nearly half of the company’s revenue at 48%. The Americas also witnessed growth, with a rate of 32%, while Europe (excluding France) saw an 18% increase. Sales in France itself rose by 27%, thanks to a particularly dynamic end of the year.
In addition to the success of its physical stores, Hermès has also benefited from the allure of e-commerce, with a 70% increase in new online customers worldwide. The brand’s event-based operations, such as “Fabrique de la Légèreté,” “Hermès in the Making,” “HermèsFit,” and “Kiosque du Monde d’Hermès,” have also contributed to its popularity. CEO Axel Dumas stated that “communication has become the 17th profession of Hermès.”
As a result of these achievements, Hermès has announced a one-time bonus of €4,000 ($4,750) for all its employees worldwide.
The Leather Goods division remains the leading category for Hermès, accounting for 43% of its sales and experiencing a 16% increase. To meet the growing demand, the brand plans to open two new leather goods workshops in Louviers and Sormonne this year, with three additional workshops planned between 2024 and 2026.
The watch division saw the highest growth at 46%, followed by fashion and accessories at 36%. Other sectors, including textiles, perfumes, and beauty, also showed positive growth rates of 30% and 15%, respectively.
To support its continued growth, Hermès has invested €1.5 billion ($1.78 billion) in operational investments over the past three years, with a focus on human capital. The company plans to accelerate its hiring policy in France and internationally in 2023.
For those interested in job opportunities in the luxury sector, ULTIMZ Journal is organizing a FUTUR & LUXE – Special HR & Talent webinar in partnership with EFAP on March 28th. This webinar aims to provide insights and advice for individuals seeking roles in the luxury industry.
Useful links:
1. FUTUR & LUXE – Special HR & Talent webinar
2. EFAP
