Shares in the luxury handbag retailer Hermès rose this morning as the family-owned firm reported yet another bumper set of results.
Revenue reached €15.2bn (£12.66bn) in 2024, up 15 per cent year on year, Hermès told markets this morning.
The share price of the Euronext-listed company rose 2.5 per cent in early trades, meaning the stock has risen 34 pe rcent in the last year and threefold since 2020.
Operating income reached €6.2bn—40.5 per cent of sales—and net profit reached €4.6bn—30.3 per cent of sales.
Hermès is one of the few luxury retailers not affected by the widespread luxury downturn over the past two years, which analysts have attributed to its strong brand identity and the status-object reputation of its Birkin bags.
“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,” Axel Dumas, Executive Chairman of Hermès, said.
“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,” Dumas added.
Even sales in Asia rose, which is remarkable given that falling sales in this area have been driving the global luxury downturn.
Sales in Asia excluding Japan rose 7 per cent, while sales in Japan rose 23 per cent and sales in the Americas and Europe rose 15 per cent and 19 per cent, respectively.
Hermès has proposed a dividend of €16.00 per share, with a €3.50 interim dividend to be paid on February 19.
“In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,” the firm said.