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Hermès Reports 18% Q4 Sales Growth, Defying Luxury Market Slowdown

The French luxury brand outperformed rivals with strong demand across regions and product categories, driven by affluent customers.

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Hermès store in Shenzhen, China.
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A model presents a bag creation by designer Veronique Nichanian as part of her Men's Winter 2024 collection at the runway show for fashion house Hermes during Men's Fashion Week in Paris, France, January 20, 2024. REUTERS/Sarah Meyssonnier/File Photo

Overview

  • Hermès achieved an 18% increase in Q4 sales, reaching €3.96 billion, surpassing analyst expectations of 10% growth.
  • The Americas and Japan led regional growth, with sales up 22.3% and 22.4% respectively, while the Middle East saw a remarkable 123.2% rise following expanded operations in the UAE.
  • Leather goods, including the iconic Birkin and Kelly bags, saw the highest category growth at 21.5%, contributing significantly to overall revenue.
  • Despite challenges in the broader luxury market, Hermès maintained resilience, with full-year sales rising 15% to €15.2 billion and net profit reaching €4.6 billion.
  • Hermès plans continued expansion with new workshops in France and store openings in smaller cities, emphasizing creativity, craftsmanship, and exclusivity.