Hermes Birkin bags are on display at the window at Kadewede Store in Berlin, Germany on Friday, January 3, 2025.
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Haute couture fashion house Hermes On Friday, it reported a jump above expectations in fourth quarter sales, demonstrating strong demand for the most exclusive products in the turbulent luxury market.
The manufacturer of Birkin Handbag forecasts 3.69 billion euros ($4.15 billion) from LSEG analysts to earn 17.6% year-on-year revenues at 17.6% exchange rates at 3.96 billion euros ($4.15 billion) over three months. It surpassed.
Full year sales increased to 14.94.9 billion euros at a constant exchange rate of 14.7% per year to 14.94 billion euros compared to 15.2 billion euros.
The company’s shares rose 4.19% at 8:08am in London, shortly after the market opened.
Hermes has largely avoided the wider luxury sector slump in recent years, maintaining the appeal and exclusiveness that other brands face pushback amidst higher costs and limited innovation.
Executive Chairman Axel Dumas pointed to customer loyalty in maintaining sales growth in an accidentally unstable macroeconomic environment.
“In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results demonstrates the strength of the Hermes model and the agility of the home team.
Going forward, the French fashion house forecasts predict continued revenue growth in 2025 without providing specific numbers, saying it is moving to the year “confident” However, Dumas added in a revenue call that it was “too early to see an inflection” in the broader industry, according to Reuters.
Sales growth is based extensively across all regions, with the Asia-Pacific region calling it a “surprising” 9% increase in the fourth quarter despite widespread range in China’s major luxury markets. We exclude Japan, which records it.
Hermes’ leather products and addlery segment accounted for less than half of the group’s revenue, up 21.7%, the fastest pace in the fourth quarter.
