Solid financial results for Hermès in 2024

Business

New Hermès boutique at 81 Paseo de Gracia, Barcelona. Pablo Zamora, courtesy of Hermès. Credits: Hermès

Paris, February 14, 2025 – Hermès continues to assert its leadership position in the luxury industry with impressive 2024 annual results. In an uncertain economic and geopolitical context, the group recorded double-digit growth in both revenue and profitability, confirming the relevance of its artisanal and exclusive model.

An exceptional year in 2024

Hermès' consolidated revenue reached €15.2 billion, up 15% at constant exchange rates and 13% at current exchange rates compared to 2023. This momentum is driven by the strength of the house's heritage crafts and a long-term development strategy. Recurring operating income reached €6.2 billion, representing 40.5% of sales, showing a 9% increase compared to the previous fiscal year. Net income attributable to the group amounted to €4.6 billion, up 7%, representing 30.3% of sales. 2024 was also marked by strong cash generation, with adjusted free cash flow of €3.8 billion, up 18%.

Growth Driven by All Regions

Hermès continues its international expansion by strengthening its distribution network and relying on a loyal customer base. This dynamic translates into solid growth across all regions where the house operates.

Asia (excluding Japan)

In Asia (excluding Japan), revenue grew by 7% over the year, with a notable acceleration in the fourth quarter (+9%), despite a decrease in traffic in Greater China. This dynamic was driven by the opening and renovation of several stores, notably in Beijing and Shenzhen, strengthening the house's presence in this strategic market. After +10% growth in the first half, activity slowed slightly before picking up again at the end of the year.

Japan

Japan posted remarkable growth of 23%, driven by a particularly loyal local clientele. The opening of new stores in Tokyo, notably in Ginza and Azabudai Hills, played a key role in this dynamic. Compared to the first half of 2024, where growth already reached 22%, the trend remains at a high level.

Americas

In the Americas, Hermès recorded a 15% increase in revenue, driven by the robustness of the US market. The strategic renovation of several boutiques, including in Atlanta and Princeton, supported this growth. This progress marks an acceleration compared to the 13% recorded in the first half of 2024.

Europe (excluding France)

Europe (excluding France) experienced 19% growth, supported by both strong local demand and an influx of tourists. The opening of new boutiques in Lille and Naples contributed to this expansion. This dynamic intensified compared to the first half of 2024, where the increase reached 18%.

France

In France, revenue grew by 13%, confirming the solidity of demand, both local and tourist-driven. This growth was fueled by the reopening of the Nantes store and the inauguration of a new boutique in Lille. However, the growth is slightly lower than that of the first half of 2024, which stood at 15%, although the trend remains positive.

Performance by Business Line: Widespread Increases, Except for Watches

All of Hermès' business lines showed robust growth in 2024, with the exception of the watch segment, which recorded a slight decline in a more challenging environment.

Leather Goods and Saddlery

The Leather Goods and Saddlery division experienced exceptional growth of 18%, driven by continued strong demand and increased production capacity. The opening of a new workshop in Riom, in the Puy-de-Dôme region, contributed to this performance. Compared to the first half of 2024, growth remained stable, following a 19% increase.

Ready-to-Wear and Accessories

The Ready-to-Wear and Accessories collections recorded a 15% increase, thanks to the success of ready-to-wear and footwear, which combine creativity and artisanal expertise. Growth remained stable compared to the first half of 2024, where it was also 15%.

Silk and Textiles

The Silk and Textiles segment posted a 4% increase, marking a significant improvement after a more moderate first half (+1%). This acceleration reflects renewed interest in this product category.

Perfume and Beauty

The Perfume and Beauty sector recorded 9% growth, driven by the successful launch of the Barénia fragrance as well as the new Hermessence Oud Alezan and H24 Herbes Vives creations. Compared to the first half of 2024, this performance marks a slight improvement after 8% growth.

Watches

The only segment in decline, Watches recorded a 4% decrease in a more challenging environment for this product category. This trend confirms the decline observed in the first half, where activity was already stagnating.

Other Business Lines

Finally, Hermès' other business lines, including jewelry and the home universe, posted dynamic growth of 17%. This development is supported by the success of the high jewelry collections and the expansion of the offering. This growth accelerated compared to the first half of 2024, where the increase reached 14%.

A Sustainable and Committed Model

Hermès continues to invest in sustainable development and workforce strengthening. In 2024, the group recruited 2,300 new employees, including 1,300 in France, bringing its total workforce to over 25,000 people.

As part of its social commitment policy, a bonus of €4,500 will be paid to all group employees at the beginning of 2025. Hermès has also strengthened its actions in favor of diversity and inclusion, achieving a direct employment rate of 7.12% for people with disabilities.

On the environmental front, the group is making significant progress:

Reduction of Scope 1 and 2 emissions by 63.7% since 2018,
Reduction of Scope 3 emissions by 50.5% in intensity,
Awards and distinctions, including the Grand Prix des Transparency Awards and inclusion in the CDP "A-List".

Dividend and 2025 Outlook

The Supervisory Board will propose a dividend of €16.00 per share, including an exceptional dividend of €10.00, at the Annual General Meeting on April 30, 2025.

Despite economic and geopolitical uncertainties, Hermès approaches 2025 with confidence, supported by the strength of its artisanal model, its exclusive network, and the creativity of its collections. The theme for 2025, "Drawing in all its forms," embodies Hermès' DNA and promises beautiful inspirations for the months to come.

Upcoming financial events:

April 17, 2025: Publication of Q1 2025 revenue
April 30, 2025: Annual General Meeting of Shareholders
July 30, 2025: Publication of H1 2025 results

Hermès concludes an exceptional 2024, marked by sustained growth, high profitability, and a strengthened social and environmental commitment. True to its model, the group continues to build its success on artisanal excellence, innovation, and a long-term vision.

This article originally appeared on FashionUnited.FR, translated and edited to English.

It was translated using AI. .

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