On February 14, before the market opened, the French luxury group Hermès announced its financial results for the fiscal year 2024, ending December 31, 2024. Annual revenue increased by 13% year-over-year to €15.2 billion, representing a 15% growth at constant exchange rates. Fourth-quarter revenue grew by 18% year-over-year to €4 billion, also reflecting an 18% increase at constant exchange rates. All regions maintained solid growth, with the Americas market showing particularly strong performance.
In terms of profitability, recurring operating income for 2024 reached €6.2 billion, with an operating margin of 40.5%. Net profit stood at €4.6 billion, with a net profit margin of 30.3%.
Axel Dumas, Executive Chairman of Hermès, stated: “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. 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.”
Looking ahead, despite uncertainties in the global economy, geopolitics, and exchange rates, Hermès reaffirmed its medium-term revenue growth target at constant exchange rates. Thanks to its highly integrated craftsmanship model, balanced distribution network, innovative product offerings, and strong customer loyalty, the group remains confident in its outlook for 2025, even amid a more complex macroeconomic landscape.
As of 9:40 AM on February 14, Hermès’ share price had risen 2.49% from the previous day, marking a 34.58% increase over the past 12 months. The company’s latest market capitalization stands at approximately €302.1 billion.
Market Performance
At constant exchange rates, all markets achieved growth in 2024, as Hermès continued to enhance the quality of its exclusive distribution network.
Japan maintained stable growth, driven by strong local customer loyalty. In February 2024, following the opening of its Tokyo Azabudai Hills store, Hermès further expanded its presence in Japan by opening a new store in Tokyo’s Ginza district in June.
In Asia (excluding Japan), strong sales across all countries contributed to significant growth. Although foot traffic in Greater China declined after Q1, sales growth rebounded to 9% in Q4. In China, expanded stores in Shenzhen Luohu and Beijing SKP reopened, followed by the reopening of Shenyang MixC in December. In Singapore, the Takashimaya store reopened in October after renovation and expansion.
The Americas market continued to perform exceptionally well in 2024. In the U.S., Hermès’ Atlanta store reopened in October after renovation and expansion, while a new store in Princeton, New Jersey, opened in April. Additionally, in October, the New York Madison Avenue boutique hosted a “petit h” exhibition.
Thanks to strong demand, local customer loyalty, and active tourist flows, the European market also performed well. In June, the Nantes boutique in France reopened after renovation and expansion, followed by the opening of a new store in Lille in November. In December, the Naples boutique in Italy reopened after an extensive renovation and expansion.
Sector Performance
At constant exchange rates, all business segments performed strongly in 2024, except for the watches category.
Driven by increased production capacity and strong demand, the leather goods and saddlery sector delivered outstanding performance. The Arçon and Della Cavalleria Élan handbag collections enriched the product portfolio, while in the travel category, the R.M.S. Cargo suitcases and weekend bags performed exceptionally well. Production capacity for this segment also continued to expand: in September 2024, Hermès opened its 23rd leather workshop in Puy-de-Dôme, with plans to establish three more workshops over the next three years—in Charente in 2025, Gironde in 2026, and Ardennes in 2027. Additionally, Hermès remains committed to developing employment and training programs across its nine specialized centers in France.
Thanks to the success of ready-to-wear and footwear, the ready-to-wear and accessories sector maintained steady growth, showcasing Hermès’ expertise and creativity. The Spring/Summer 2025 collections debuted in June at Palais d’Iéna and in September at the Garde Républicaine headquarters, receiving widespread acclaim.
The silk and textiles sector also saw growth, benefiting from the diversity of designs, materials, and styles across its men’s and women’s collections.
The fragrance and beauty sector achieved stable growth. In September, Hermès launched the new Barénia women’s fragrance, inspired by the brand’s signature natural leather. It received an enthusiastic global response alongside classics like Terre d’Hermès and newer creations such as Hermessence Oud Alezan and H24 Herbes Vives. The beauty category continued its expansion with the launch of Trait Hermès eyeliners and lip liners.
Despite a more challenging market environment and high comparison bases, the watches sector still showcased Hermès’ distinctive creativity and fine watchmaking expertise. The Arceau Duc Attelé complication watch, the Hermès Cut, and the iconic Hermès H08 and Kelly watch collections all achieved notable success.
Other Hermès sectors, including jewelry and home collections, also recorded strong growth. The eighth high jewelry collection, “Les formes de la couleur,” was exhibited in Paris, Beijing, and Taipei.
Additionally, in terms of sustainability, during the reporting period:
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In 2024, Hermès continued to expand its workforce, adding approximately 2,300 employees, including 1,300 in France. As of the end of 2024, the total number of employees in the group exceeded 25,000, with 15,556 in France. Over the past three years, Hermès has created approximately 7,000 jobs, 60% of which are based in France.
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To promote diversity, Hermès reaffirmed its commitment to the inclusion of employees with disabilities. In France, the direct employment rate for disabled employees reached 7.12%, doubling over the past five years.
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As a responsible employer, Hermès awarded each employee a €4,500 year-end bonus in 2024. The company also strengthened its commitment to education and craftsmanship transmission, particularly through the expansion of the Hermès Craftsmanship Academy, broadening its training programs across 10 vocational schools in France. The company also reaffirmed its commitment to localization, promoting local craftsmanship training and employment development.
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Hermès continued its climate action initiatives in line with its 2030 targets, which have been validated by the Science Based Targets initiative (SBTi). Since 2018, the company has reduced Scope 1 and 2 carbon emissions by 63.7% and Scope 3 emissions by 50.5%.
| Source: Hermès official website & financial reports
| Image Credit: Hermès official website
| Editor: Wang Jiaqi
