Hermès, the prominent ultra-luxury brand, has announced robust sales and financial results for the year 2023, as well as for the fourth quarter. The company’s revenue witnessed a significant upturn of 16%, reaching €13.4 billion for the year, and an even more impressive 21% increase at constant exchange rates (CER). Meanwhile, recurring operating income rose by 20% to €5.7 billion, and net profit surged by 28%, amounting to €4.3 billion. In the fourth quarter alone, sales soared by 13% to €3.364 billion, marking an 18% rise at CER.

Executive Chairman Axel Dumas expressed his satisfaction with Hermès’ exceptional performance, emphasizing the strong growth the company achieved in all areas and regions. Dumas attributed this success to the immense desirability of their collections coupled with the unwavering dedication of their employees.

Reviewing the company’s growth on a regional basis, it becomes evident that all regions recorded solid growth of approximately 20% by the end of December. Hermès experienced an increase in sales across its stores, primarily due to a high demand and its expansion of an exclusive distribution network. Furthermore, wholesale sales witnessed growth propelled by the travel retail business. In Asia, excluding Japan, sales surged by 19%, with substantial growth observed across all countries. This growth was facilitated by the establishment of new stores, including the second store in Chengdu, China, and the reopening of the store in Seoul, South Korea. In Japan, sales rose by an impressive 26%, supported by the launch of new stores in Sapporo and Kyoto. Likewise, sales in America saw a boost of 21%, benefiting greatly from strategic store investments. In Europe, both France and the rest of Europe experienced a 20% increase in sales, thanks to the loyalty exhibited by local clients and the influx of tourists.

All sectors within the Hermès brand have performed remarkably well. Notably, ready-to-wear and accessories, watches, and other sectors demonstrated outstanding growth. The leather goods and saddlery sector experienced significant growth of 17%, while the ready-to-wear and accessories sector saw a remarkable 28% increase. Additionally, the silk and textiles sector witnessed a rise of 16%, while perfume and beauty achieved a 12% growth due to the popularity of existing products and successful new product launches. The watch sector experienced a considerable 23% escalation, and other sectors, including jewelry and homewares, recorded an impressive 26% surge in sales.

Looking ahead, Hermès maintains a positive outlook regarding its future growth. Despite potential economic and geopolitical uncertainties, the company confidently confirms its ambitious goal of achieving revenue growth at constant exchange rates in the medium term.

Sources:
1. Hermès Official Website
2. Business of Fashion Article