Companies

Hermès continues to grow

Jul 30, 2024 France

Amid a general slowdown in the luxury sector, the French-based luxury group stood out by reporting a strong first half in 2023, with both sales and profits up

“The solid first-half results, in a more complex economic and geopolitical context, reflect the strength of Hermès’ model. The group is confident in the future and is continuing to invest, to pursue its vertical integration projects and to create new jobs, while remaining true to its values”, commented Axel Dumas, Executive Chairman of Hermès.

First Half Results

In the first half of fiscal 2024, the group’s revenue reached 7.5 billion euros, an increase of 15% at constant exchange rates and 12% at current exchange rates, on a comparable basis to the same period of last year. All the geographical areas recorded growth, despite an inflection in traffic in Greater China in the second quarter of the year.

In the Asia Pacific region, excluding Japan, Hermès’ first half revenue grew by 9.9% at constant exchange rates to 3.25 billion euros, as compared to the same period of 2023. In Japan, the group’s revenue increased by 22.4% year-on-year at constant exchange rates to 693 million euros.

As a result of a “continued solid momentum” in the US, Hermès recorded a revenue of 1.33 billion euros in the Americas region in the first half of the year, up by 12.6% on a similar period of the previous year.

At the end of June, the group’s revenue totalled 970 million euros in Europe (excluding France) and 680 million euros in France, representing an increase of 17.7% and 14.7% respectively at constant exchange rates, on a comparable basis to the first semester of 2023.

A highlight to the performance of the Leather Goods and Saddlery métier in this period. “Thanks to the increase in production capacities and particularly sustained demand”, this segment saw its revenue rise by 19.1% year-on-year at constant exchange rates to 3.22 billion euros.

In the first half of the year, Hermès reported a 7% increase in recurring operating income to 3.1 billion euros, as compared to 2.9 billion euros in the same period last year, with recurring operating profitability reaching 42% from 44% at the end of June 2023.

Overall, the company’s net income for the six months increased to 2.4 billion euros from 2.2 billion euros in the first half of 2023, representing a net profitability of 32% compared to 33% last year.

Image Credits: theimpression.com

France Companies Hermès Luxury Quarter Results Results