Luxury powerhouse Hermès has exceeded expectations with its strong sales performance in the fourth quarter of 2022. The company reported a 22.9% increase in sales, totaling €2.99 billion. This achievement was driven by booming sales in the US and resilient sales in China, despite the challenges posed by the ongoing Covid-19 pandemic.

Hermès remains optimistic about the future and has set ambitious goals for revenue growth at constant exchange rates. The company’s consolidated revenue for the full year increased by 29% (or 23% at constant exchange rates) to reach €11.602 billion. Additionally, recurring operating income saw significant growth, reaching €4.697 billion or 40.5% of sales, compared to €3.53 billion and 39.3% of sales the previous year. Net profit rose to €3.367 billion, representing a net profitability of 29%, up from €2.445 billion and 27.2% net profitability in the previous year.

Executive chairman Axel Dumas attributed Hermès’ exceptional year to its strong performance in international markets. He highlighted the company’s artisanal and integrated approach, emphasizing its commitment to functional design, assertive style, and uncompromising quality. This success further demonstrates the relevance of Hermès’ responsible and sustainable model.

Key sales highlights include significant growth in both group stores (+23%) and wholesale (+26%), fueled by the recovery in travel retail. Hermès also expanded its exclusive distribution network and witnessed a positive trend in online sales worldwide. Sales in Asia (excluding Japan) saw a 22% increase, with Greater China showing sustained growth. The company opened new stores in China and South Korea, as well as renovated several others.

In Japan, sales increased by 20%, with steady growth following the reopening of the Takashimaya store in Nagoya. The Americas also performed well, with a 32% increase in sales driven by new store openings in Austin and New York, as well as the reopening of the Guadalajara location in Mexico. Europe (excluding France) experienced an 18% increase in sales as tourism began to recover and local clients remained loyal.

In France, there was a strong sales increase of 27%, thanks to high demand from both national and international clients. Hermès’ different business lines also fared well, with significant growth seen in the Ready-to-Wear and Accessories, Watches, and ‘Other’ categories. The Leather Goods and Saddlery division reported a 16% increase in sales, while the Ready-to-Wear and Accessories division stood out with a notable growth of 36%. Watches experienced the highest growth at 46%, and the ‘Other’ category, including Jewelry and Homeware, saw a healthy increase of 30%.

The Silk and Textiles business line also had a splendid performance with a 20% sales increase, supported by the expansion of production capacities. Perfume and Beauty sales increased by 15%, driven by new product launches. Hermès’ Beauty division, established two years ago, continues to experience strong growth.

Overall, Hermès’ impressive sales performance in the fourth quarter and throughout the year showcases the brand’s resilience and appeal in the luxury market. With its strategic focus on craftsmanship, quality, and sustainability, the company is well-positioned for continued success.

For more information, you can visit the official Hermès website [link] and read more about the company’s financial performance and product offerings [link].