French fashion house Hermes achieves $15.95 bn revenue in 2024

The cost of the sales of the company rose to €4,511 million, resulting in a gross margin of €10,660 million, up from €9,708 million the previous year. Sales and administrative expenses increased to €3,569 million, while other income and expenses amounted to €942 million, leading to a recurring operating income of €6,150 million, compared to €5,650 million in 2023, Hermes said in a press release.

The net financial income improved to €283 million from €190 million, resulting in a net income before tax of €6,432 million. The income tax expense rose to €1,845 million, compared to €1,623 million in the previous year. Basic earnings per share (EPS) rose to €43.93, while diluted earnings per share increased to €43.87, compared to €41.19 and €41.12 in 2023, respectively.

By geography, the company’s revenue in Europe rose by 16.2 per cent to €3,594 million (~$3,771 million), with France contributing €1,447 million (up 13.5 per cent), while the rest of Europe recorded an 18.1 per cent growth to €2,147 million. Japan experienced a 14.0 per cent increase to €1,437 million, with a notable 22.5 per cent rise at constant exchange rates.

The Asia-Pacific region (excluding Japan) grew by 6 per cent to €6,648 million, reaching a 7.4 per cent increase at constant exchange rates, bringing the total Asia revenue to €8,085 million, a 7.3 per cent rise. The Americas recorded a 14.5 per cent growth, with revenue reaching €2,865 million, while the Middle East region saw the most significant surge, rising by 109.7 per cent to €627 million.

Segment-wise, leather goods and saddlery segment remained the largest contributor, generating €6,457 million, reflecting a 16.4 per cent increase from 2023 and an 18.3 per cent rise at constant exchange rates. Ready-to-wear and accessories followed with a revenue of €4,405 million, up by 13.6 per cent and 15.4 per cent at constant exchange rates. The silk and textiles segment saw modest growth, reaching €950 million, an increase of 1.9 per cent (3.8 per cent at constant exchange rates).

“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,” said Axel Dumas, executive chairman at Hermes.

Fourth quarter (Q4)

Hermes, in its fourth quarter (Q4), accumulated sales of €4.0 billion (~$4.2 billion), increasing by 18 per cent at constant and current exchange rates. The Europe’s revenue grew by 16.9 per cent to €994 million in Q4, with France contributing €401 million (up 11.8 per cent), while the rest of Europe saw a 20.6 per cent increase to €593 million. Japan recorded a 19.7 per cent rise, reaching €384 million, with an even stronger 22.4 per cent increase at constant exchange rates. The Asia-Pacific region (excluding Japan) generated €1,543 million, growing by 10.1 per cent, bringing the total Asia revenue to €1,927 million, up 11.9 per cent.

The Americas performed strongly, with revenue increasing by 21.4 per cent to €870 million, while the Middle East recorded the most significant surge, with revenue more than doubling to €171 million, reflecting a 125.2 per cent increase.

Fibre2Fashion News Desk (SG)