In an exceptional demonstration of resilience and growth, Hermès, the iconic French luxury brand, has once again exceeded expectations, surpassing industry forecasts with remarkable fourth-quarter results. The brand, known for its exclusive offerings and timeless elegance, continues to break boundaries, with sales for Q4 of 2024 showing an impressive 18% year-on-year increase, reaching €4 billion at constant exchange rates. This far exceeds the anticipated 11% growth and signifies a notable acceleration compared to the 11% rise observed in Q3.
€319 Billion Valuation Marks a New Milestone
This extraordinary performance further solidifies Hermès’s place as a leader in the luxury goods sector, as it joins the ranks of industry giants such as Richemont in delivering robust results despite market fluctuations. As a result, the brand’s valuation has now crossed the €300 billion milestone, reaching an impressive €319 billion as of February 2025. This surge marks a significant achievement for Hermès, setting it apart from many of its competitors in the luxury industry, including LVMH, Kering, and Moncler, who reported more modest growth rates for the same period.
A Strong Year with 15% Sales Growth
For the entire year of 2024, Hermès posted a sales increase of 15%, amounting to €15.2 billion, a performance that resonates powerfully within the luxury sector. Notably, Hermès’s remarkable growth was driven by strong sales across multiple regions. The Americas showed the most significant increase, growing by 22.3%, followed by Europe with a 17% boost and Japan with a notable 22.4% surge. Asia-Pacific experienced a more modest increase of 8.9%. Hermès’s performance in the Americas and Japan underscores the brand’s continued appeal across diverse international markets.
Leather Goods and Accessories Lead the Charge
When analysing the individual drivers behind this growth, the company’s leather goods category, including the iconic Birkin and Kelly bags, led the charge, with a growth rate of 21.5%. Ready-to-wear and accessories also performed strongly, increasing by 17.4%, alongside similar growth in other Hermès product lines such as jewellery, homeware, and perfumes. Even watch sales, which had been somewhat more subdued, experienced a steady 2.6% increase.
Expanding into Couture and Beauty
One of the key reasons behind Hermès’s continued success is its unwavering commitment to craftsmanship and exclusivity, qualities that continue to resonate with discerning consumers around the globe. At the earnings conference in Paris, Hermès Executive Chairman Axel Dumas confirmed exciting future plans, including the introduction of Hermès couture, with a potential launch slated for 2026-2027. This move underscores the brand’s focus on expanding its luxury offering while staying true to its heritage of savoir-faire and exceptional quality.
Rewarding Employees and Expanding Globally
In addition to these impressive financial results, Hermès has announced a €4,500 bonus for all global employees, a gesture of appreciation for their contribution to the company’s success in 2024. This is the second consecutive year that the brand has rewarded its employees with such a generous bonus, highlighting Hermès’s commitment to its people.
The company’s growth is not limited to just sales; it is also expanding its global footprint. New store openings will be seen in key cities such as Florence, Nashville, Phoenix, Shenzhen, and Guangzhou, alongside store expansions in around 20 locations globally. This strategic expansion reflects Hermès’s belief in the enduring appeal of its brand and its ability to thrive in an increasingly competitive luxury market.
Navigating Global Challenges and Price Increases
Looking ahead to 2025, Hermès has indicated plans to increase prices by 6 to 7% to maintain its exclusivity and luxury appeal. While global geopolitical tensions and evolving trade relations remain concerns, Dumas expressed confidence in the company’s ability to navigate these challenges, emphasising that Hermès’s production in France and international retail operations continue to thrive despite external pressures.
In an era of uncertainty, Hermès’s exceptional growth is a testament to the enduring power of luxury, craftsmanship, and brand value. As it continues to break records and expand its horizons, Hermès remains at the forefront of the luxury industry, standing as a beacon of success and sophistication in an ever-changing market.
Written By: Lydia Kelly
Published: 25th February 2025