Companies

Hermès posts full year revenue growth

Feb 14, 2024 France

The French-based luxury group reported “an outstanding performance” across all regions in 2023, with total revenue up by 21% year-on-year at constant exchange rates to 13.42 billion euros

“In 2023, Hermès has once again cultivated its singularity and achieved an outstanding performance in all métiers and across all regions against a high base. These solid results reflect the strong desirability of our collections and the commitment and talent of the house’s women and men. I thank them all warmly”, commented Axel Dumas, Executive Chairman of Hermès.

The group’s consolidated revenue reached 13.42 billion euros in 2023, reflecting an increase of 21% at constant exchange rates and 16% at current exchange rates, as compared to the previous year. In addition, Hermès’ full year recurring operating income amounted to 5.65 billion euros, up by 20%, and its net profit totalled 4.31 billion euros, up by 28%, on a comparable basis to 2022.

In the fourth quarter alone, the luxury group reported a sales growth of 18% at constant exchange rates and 13% at current exchange rates to 3.36 billion euros, as compared to the same period of the prior year, despite the particularly high comparison base in America and Asia.

Geographical Areas

At the end of December, Hermès’ sales in Asia excluding Japan totalled 6.27 billion euros, representing a growth of 19%, on a comparable basis to 2022. The group also recorded “a steady and sustained increase in sales” of 26% year-on-year in Japan to 1.26 billion euros.

The company highlighted the “outstanding performance” of the Americas region, particularly in the second half of the year, where sales reached 2.50 billion euros, up by 21% as compared to the previous year.

In 2023, sales in both Europe excluding France and France registered a “robust growth” of 20% to 1.81 billion euros and 1.27 billion euros, respectively, on a comparable basis to the prior fiscal year.

Segment Highlights

Last year, the Ready-to-wear and Accessories segment performed particularly well, “thanks to the success of the ready-to-wear and footwear collections”, with sales rising by 28 % to 3.88 billion euros, as compared to 2022.

The Leather Goods and Saddlery segment also saw “very sustained demand” in 2023. Sales in this segment amounted to 5.55 billion euros, reflecting an increase of 17% on a comparable basis to the prior year.

Image Credits: senatus.net

France Accessories Footwear Hermès Luxury Quarter Results Results Shoes Year Results