If you look at Hermès’ 2024 results, you’ll wonder if it works in another sector.
Birkinmakers have a source of growth that goes against the market when many of their gorgeous peers struggled. It may be too early to read tea leaves, but they have recently shown signs of improvement.
Hermes reported revenues increased by 15% in 2024, with certain currency rising to 15.2 billion euros ($15.9 billion). Sales rose 18% in the last three months of the year, and historical analyst estimates have boosted the 10% estimate thanks to strong demand from tourists in Japan and Europe.
“In 2024, in a more uncertain economic and geopolitical context, the solid performance of the outcome demonstrates the strength of the Hermes model and the agility of the House team,” said executive chairman Axel. Dumas said.
The company’s leather goods business was the strongest, and its ready-made accessories continued closely.
During Hermes’ earnings, when asked about the track record of positive results on Friday, Dumas said “there is no explanation other than the fact that we’re doing well, we do it with authenticity.”
“We’re not marketing… I believe it’s not Hermes’ success, but the world has come to us,” he says in a live English translation. Ta.
Hermes shares have risen 1.24% as of 11am London time.
The French company, dating back to 1837, succeeded in a luxurious slowdown that influenced most of its rivals when its founder Thierry Hermes founded the Harness Workshop. When they lost business around the world, especially in Asia, their appetite for gorgeous Hermes bags and accessories remained strong.
Along the way, elite bag makers are being fooled and fighting against macroeconomic volatility, and have been raising prices for years. But it was ultimately a success.
“Some people want to do a bit like Hermes, but it doesn’t work at the end of the day,” Dumas said over the phone.
As companies make bags, they often take longer to make, creating rarity, and as a result, they make their products more attractive to more attractive shoppers. Unlike conglomerates such as LVMH, the company creates and sells branded products only, relying on value rather than product volume.
Other companies have also become heavily dependent on businesses from China. This was booming amid the pandemic time lockdown, but has not recovered as expected. It has sparked other markets as well as the state thanks to robust consumer demand.
British label Burberry, which offers more affordable luxury goods, reported sales exceeding expectations after an extended slump, with the help of stronger American spending.
The story continues
