Companies

Strong full year 2024 for Hermès

Feb 19, 2025 France

Amidst a challenging macroeconomic environment, the France-based luxury group has reported a strong full year performance, underpinned by solid growth in all regions

“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”, commented Axel Dumas, Executive Chairman of Hermès.

The luxury group reported a consolidated revenue of 15.2 billion euros in 2024, an increase of 15% at constant exchange rates and 13% at current exchange rates, as compared to the previous year. In the fourth quarter alone, sales reached 4.0 billion euros, increasing by 18% at constant exchange rates and current exchange rates.

Geographical Areas

(at constant exchange rates)

At the end of December last year, Asia excluding Japan recorded a 7% increase in sales, on a comparable basis to 2023, despite the decline in traffic in Greater China since the end of the first quarter. Japan achieved sustained growth, driven by the loyalty of local clients, with sales up by 23% over the previous year.

Hermès also “confirmed excellent growth in 2024” in the Americas, as sales grew by 15%, as compared to the prior year. Performances in Europe excluding France and France respectively were also strong, with sales up by 19% and 13% respectively on the previous year, supported by robust demand and loyalty from local customers and dynamic tourist flows.

Sectoral Performance

(at constant exchange rates)

All métiers except Watches posted solid growth last year. The Leather Goods and Saddlery segment in particular “achieved a remarkable performance”, with sales increasing by 18%, as compared to 2023.

Ready-to-wear and Accessories maintained its momentum with sales growth of 15%, followed by Perfume and Beauty and Silk and Textiles with sales growth of 9% and 4% year-on-year respectively. The Other Hermès sector, which includes jewellery and home, grew by 17% year-on-year.

Financial Performance

In 2024, the luxury group’s recurring operating income amounted to 6.2 billion euros, an increase of 9% on a comparable basis to 5.7 billion euros in 2023. Consolidated net profit also rose by 7% to 4.6 billion euros from the previous year.

In addition, cash flow from operating activities amounted to 5.1 billion euros, increasing by 19% due to a lower increase in working capital requirements. Adjusted free cash flow was 3.8 billion euros, compared to 3.2 billion euros in 2023, after operational investments and the repayment of lease liabilities.

Image Credits: loveluxury.co.uk

France Companies Hermès Luxury Results Year Results