The fabulous world of Hermès. Revenue up (+18% in the last quarter), new hires (2,300 in 2024), and employee bonuses (4,500 euro), and a special dividend (10 euro) for shareholders, in addition to the ordinary dividend (16 euro). The fashion house confirms it plays in a league of its own. “US duties? We are going to raise prices“, CEO Axel Dumas said quite simply.
The fabulous world of Hermès
The French group announced its fourth quarter results: well above analysts’ expectations. Revenue (4 billion euro) grew 18%, while according to the Visible Alpha consensus cited by UBS, the forecast was +10%. The “Maroquinerie-Sellerie” division, which accounts for nearly half of the group’s revenue, grew 21.5%, while analysts (source Reuters) expected +13%. Thanks to this boost, Hermès ended 2024 with sales of 15.2 billion euro, up 15% from 2023. Net income grew 7% to 4.6 billion euro. “Hermès further confirms that the luxury consumer was still there in the fourth quarter, including in China, for brands with solid momentum and execution”, JP Morgan analysts said. In the People’s Republic, “we see positive signs, but not enough to talk about a definitive turnaround“, Dumas told analysts.
Investments
Hermès created 2,300 new jobs last year, including 1,300 in France, where it produces 74% of its items. The brand announced a bonus of 4,500 euros for its more than 25,000 employees worldwide, up from 4,000 euro handed the previous year. For 2025, Dumas remains cautious, but ambitious: “I remain very positive even though the bar is high” after the 2024 performance. The only non-positive figure is the operating margin, which fell to 40.5% from 42.1% a year earlier. For Dumas, this is mainly due to exchange rate trends.
Duties
Asked about the impact of possible U.S. duties on European products, Dumas said the company will not shift production (as, it seems, LVMH wants to do). “We firmly believe that our production should remain where it is”: that is, in France for leather goods, in Switzerland for watches, and in Italy for shoes. We will adapt to tariffs and raise prices accordingly”, he added. The company will raise prices by between 6% and 7% this year, to reflect higher production costs and currency exchange rates. That, according to Dumas is a slightly lower increase than last year. “One of the things that worries me the most is the evolution of global geopolitics. It’s not the tariffs that worry me the most, it’s the tension between people”, Dumas concluded, reports Business of Fashion.
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