Dive Brief:
- Hermès year-over-year consolidated revenue for fiscal 2023 was up 16% to 13.4 billion euros, or approximately $14.5 billion at current exchange rates, according to a Friday press release.
- In the fourth quarter, sales for the company were up 13% to 3.4 billion year over year, “despite the particularly high comparison base in America and in Asia,” according to the release. The increase was a continuation of the company’s 17% sales growth in Q3.
- The company saw double-digit sales growth at both retail and wholesale and across all geographical regions for fiscal 2023. That included a 19% increase in Europe, a 13% increase in Asia, a 17% rise in the Americas, and a 44% increase in other regions — although the latter segment only comprises a small portion of group sales.
Dive Insight:
The continuing popularity of Hermès handbags has allowed the France-based company to stay resilient while some other luxury firms struggle in a downturn in the sector.
“In 2023, Hermès has once again cultivated its singularity and achieved an outstanding performance in all métiers and across all regions against a high base,” Axel Dumas, executive chairman said in a statement. “These solid results reflect the strong desirability of our collections and the commitment and talent of the house’s women and men.”
The company’s Leather Goods and Saddlery division was up 12% year over year, and the company noted consumer demand for its Maximors, Della Cavalleria Élan and Arçon bags. The ready-to-wear and accessories division, which includes menswear and womenswear, belts, costume jewelry, gloves, hats and footwear, was up 23%.
The Hermès group added 2,400 people to its workforce in 2023, bringing the total number of employees to 22,040, including 13,700 in France, per the release. Over the past three years, the company said it has created more than 5,400 jobs, including 3,300 in France. In keeping with the June 2023 announcement of a new shares allocation plan, Hermès will pay an annual bonus of 4,000 euros to “all its employees worldwide.”
The company will announce its first-quarter earnings for fiscal 2024 on April 25.
