The French luxury house outpaces competitors as demand for its coveted handbags and ready-to-wear remains strong.
Hermès has once again proven its resilience in the luxury sector, closing 2024 with an 18% jump in fourth-quarter sales, reaching €4 billion. The French maison’s growth starkly contrasts with the struggles of competitors LVMH and Kering, which posted a mere 1% revenue increase and a 12% decline, respectively, over the same period.
The strong performance exceeded analyst expectations of 11% growth, marking a steady upward trajectory from its €3.7 billion sales record in Q3. Investors responded positively, sending Hermès shares up 2.1% on the Paris Stock Exchange.
“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,” said CEO Axel Dumas. “The house is staying the course, attached more than ever to its fundamental values of quality, creativity, and savoir-faire.”
The company’s continued success has prompted a €4,500 bonus for employees, alongside expansion plans that include three new manufacturing workshops in France over the next two years.
Global Growth and Strategic Expansion
Hermès saw significant sales gains across key regions, with the Middle East leading the charge with a staggering 123.2% increase—bolstered by the brand’s majority shareholder acquisition of its retail network in the UAE. The Americas posted a 22.3% rise, fueled by successful store openings in Atlanta and Princeton, while European sales (excluding France) climbed 20.7%. In its home market, sales increased by 11.8%.
Despite broader luxury market weaknesses in China, Hermès continued its upward trend in Asia (excluding Japan), reporting a 7% gain, supported by the expansion of its Shenyang MixC mall location and new store openings in Singapore and beyond. Meanwhile, Japan remained a bright spot, recording a 22.4% increase in Q4.
Category Highlights: Leather Goods and Beauty Lead the Way
Hermès’ leather goods division—home to its sought-after Birkin and Kelly bags—recorded a robust 21.5% growth, while ready-to-wear and accessories climbed 17%. The house’s beauty segment also saw a 17% boost, aided by a new fragrance launch, and jewelry and home categories reported similar growth. The watch category, however, struggled with just a 2% increase, reflecting a broader industry slowdown.
For the full year, Hermès posted a 15% revenue increase at constant exchange rates, bringing total sales to €15.2 billion. Net profits came in at €4.6 billion, reinforcing the brand’s financial strength as it moves into 2025 with confidence.
Despite ongoing economic and political uncertainties, Hermès remains committed to its long-term strategy, emphasizing controlled expansion into emerging markets and maintaining its distinctive artisanal approach. “The group has moved into 2025 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections, and the loyalty of clients,” the company stated.