On October 24, before the market opened, Hermès, the French luxury group headquartered in Paris, released key financial data for the first nine months and the third quarter of fiscal year 2024, ending September 30. For the first nine months of this year, the group’s consolidated sales revenue increased by 11% year-on-year to €11.2 billion, representing a 14% growth at constant exchange rates. In the third quarter, sales revenue rose by 10.1% year-on-year to €3.7 billion, reflecting an 11.3% increase at constant exchange rates, aligning with forecasts by Wall Street investment bank Jefferies. Despite high comparative baselines in Europe and the Asia-Pacific region, Hermès achieved growth across all global regions in both the first nine months and the third quarter.
Hermès’ Executive Chairman, Axel Dumas, stated: “In a more uncertain economic and geopolitical context, I want to thank all employees for the robust third-quarter performance, and our customers for their loyalty. Thanks to the singularity of its model, Hermès is continuing its recruitments and long-term investments.”
By region, the slowest growth in the third quarter occurred in Asia (excluding Japan), where sales increased by just 1% at constant exchange rates. Hermès’ Executive Vice President of Finance, Eric du Halgouet, explained in a post-earnings call that performance in the Asia-Pacific region was relatively even. “In China, the declining trend has not stopped, and we are still facing lower traffic since the Chinese New Year. However, there has been no further decline,” he noted. Hermès is compensating for the drop in traffic by increasing average spending per customer (higher average baskets) and selling more jewelry, leather goods, and ready-to-wear collections for both men and women.
Eric du Halgouet confirmed that the group will continue investing in the Chinese Mainland. On Wednesday, Hermès officially opened a new store in Shenzhen’s MixC Mall, which is the brand’s largest single-story store in China, spanning 900 square meters. Next year, Hermès plans to open a new flagship store in Beijing.
Luca Solca, Senior Luxury Goods Analyst at Bernstein, remarked in the conference call, “We believe Hermès represents the best opportunity to protect portfolios from setbacks in the second half of 2024, driven by a global cyclical slowdown, which has been exacerbated by structural issues in China.” He noted that growth in all Hermès departments, except watches, exceeded expectations.
As of the publication by Luxe.CO (12 PM European time), Hermès’ share price had risen by 1.8% compared to the previous trading day, reaching €2,098 per share, with a current market value of approximately €223.25 billion. Since the beginning of the year, Hermès’ stock price has increased by nearly 9%.
By region (calculated at constant exchange rates unless otherwise stated):
- Asia (excluding Japan) (+7%): Growth was driven by solid sales in South Korea, Singapore, Australia, and Thailand. Although foot traffic in Greater China has decreased since the end of the Chinese New Year, the region still saw an increase in traffic in the third quarter, despite a high comparison base from last year. After reopening its Lee Gardens store in Hong Kong in June, Hermès reopened its renovated and expanded store in Shenzhen in October. In August, the Collins Street store in Melbourne also reopened after renovations.
- Japan (+23%): Strong growth was fueled by local customer loyalty. A new store in Tokyo’s Ginza Mitsukoshi opened in June, following the opening of the Azabudai Hills store in February.
- Americas (+13%): The third quarter maintained strong momentum, with growth close to the first two quarters. A new store in Princeton, New Jersey, opened in April, and online sales continued to expand, launching in Mexico in September.
- Europe (excluding France) (+18%): Remarkable performance in the third quarter was driven by strong local demand and continued active tourist flows across all countries in the region.
- France (+14%): Continued growth in the third quarter, despite a slight slowdown in traffic at Paris stores due to the Olympics, confirmed the brand’s momentum. The Nantes store reopened after renovations in June.
By department (calculated at constant exchange rates unless otherwise stated):
- Leather Goods and Saddlery (+17%): Continued steady growth, with sustained demand for iconic styles and new designs such as the Constance Élan and Bolide à dos bags. Production capacity continued to expand, with the group opening its 23rd leather workshop in Riom, France, in September. This new facility strengthens the company’s nine specialized hubs across the country.
- Ready-to-Wear and Accessories (+15%): Growth momentum persisted, bolstered by the well-received 2025 Spring/Summer Men’s Fashion Show held in June at Palais d’Iéna in Paris. The 2025 Spring/Summer Women’s Collection, showcased in late September at Garde Républicaine, combined soft leather and translucent elements.
- Silk and Textiles (+2%): Growth was primarily driven by creations combining exceptional materials and craftsmanship.
- Perfume and Beauty (+7%): Steady growth in the third quarter, marked by the successful launch of a new women’s fragrance, Barénia, designed by Christine Nagel, along with the second part of the beauty line, Le Regard, featuring eyeliner and lip liner.
- Watches (-6%): Decline mainly due to a high comparison base from exclusive activities in the third quarter of last year and a more challenging environment. The Hermès H08 series continued to receive acclaim.
- Other Hermès sectors (+17%, including jewelry and home collections): Strong growth in these collections underscored the brand’s uniqueness and creativity. Following an exhibition in Paris in June, the eighth High Jewelry collection, Les formes de la couleur, was showcased in Beijing in September.
Other Products: This category includes production activities for non-group brands, such as textile printing, leather tanning, and the production activities of group-owned brands like John Lobb, Saint-Louis, and Puiforcat.
Sustainable and Responsible Development Model
- In line with its commitment to local engagement and job creation, Hermès opened a leather workshop in September in the city of Riom, France. This workshop employs 250 artisans who have received brand-specific training, as well as approximately 30 management, human resources, and logistics staff. It is the second production facility for Hermès in the Auvergne region. The workshop was created from a converted building that once housed the Riom Tobacco Factory (Manufacture des Tabacs de Riom), an industrial site now listed as a historic monument. The renovation reflects the brand’s commitment to preserving industrial heritage and minimizing land artificialization.
- In August, Hermès’ craftsmanship model for sustainability and responsibility was recognized by Standard & Poor’s, with the brand’s rating improving by 11 points to 65/100. MSCI also confirmed the brand’s AA rating in light of increased regulatory scrutiny and transparency requirements. These results affirm Hermès’ dedication to its values and commitments.
Other key highlights:
- Currency fluctuations had a negative impact of €242 million on sales by the end of September 2024.
- During the first nine months, Hermès International repurchased 21,316 shares for €40 million, excluding transactions completed within the framework of the liquidity contract.
Despite global economic, geopolitical, and currency uncertainties, Hermès remains ambitious about achieving sales growth at constant exchange rates. Through its unique business model, the group continues to implement a long-term development strategy focused on creativity, maintaining control over its craftsmanship, and distinctive communication.
For 2024, Hermès’ theme is “In the Spirit of the Faubourg,” a tribute to the place that embodies the heart of the brand’s aspirations and spirit, reflecting the energy and joy Hermès holds dear.
As of September 30, Hermès’ key financial data for the third quarter of fiscal year 2024 are as follows:
- By department
- By region
｜Source: Official financial report, Reuters
｜Image Credit: Hermès official website, Hermès official WeChat account
｜Editor: Jiaqi Wang
