Hermes, the esteemed French luxury brand renowned for its coveted Birkin bags, has reported a significant surge in sales, defying the broader slowdown in the luxury goods sector.
The company announced a remarkable 17.5% increase in fourth-quarter revenue at constant exchange rates, surpassing analysts’ expectations of around 14%.
Amidst the post-pandemic cooling in luxury product demand, Hermes has continued to attract affluent clientele drawn to its exclusive offerings, including its elusive handbags and luxurious silk scarves.
All major divisions of the Paris-based brand experienced growth of at least 10%.
Executive Chairman Axel Dumas revealed plans for an average 8%-9% increase in product prices for the year 2024, a strategy aimed at maintaining the brand’s exclusivity and enhancing profitability.
Hermes’ stellar financial performance extended throughout the year, with recurring operating income reaching €5.65 billion ($6.1 billion), surpassing analyst projections.
The luxury market landscape has been varied, with some major players like LVMH and Richemont demonstrating resilience, while others like Burberry Group and Kering faced challenges amidst ongoing transformations.
However, Hermes’ exceptional growth underscores its enduring appeal and ability to navigate market fluctuations with finesse.