Hermès 2024 Revenue Climbs 15% as Leather Goods Lead the Surge

Luxury may be cooling, but Hermès continues to defy the trend. The French maison posted another year of remarkable growth, propelled by its iconic leather goods, which include the ever-elusive Birkin and Kelly bags. Despite economic uncertainties and even the appearance of a Walmart lookalike, demand remains far ahead of supply.

In 2024, Hermès achieved €15.2 billion in revenue, a 15% increase at constant exchange rates (13% at current rates) compared to the previous year. The fourth quarter alone saw an 18% jump, powered by strong sales in the Americas. Axel Dumas, Executive Chairman, called the results “outstanding” and credited the resilience of the Hermès model and the agility of its teams.

Regional Performance: Double-Digit Growth Everywhere

All regions posted double-digit growth. Asia as a whole rose 10%, with Japan surging 23%. Asia excluding Japan, which includes China, saw a 7% increase despite a challenging environment. Europe excluding France grew 19%, while France itself was up 13%, thanks to loyal local clients and tourist spending. The Americas recorded a 15% gain.

Leather Goods and Saddlery: The Engine of Growth

The leather goods division, the maison’s largest, saw revenues jump 18%, and its share of total revenue increased from 41% to 43%. New designs like the Arçon and Hermès Della Cavalleria Élan contributed to this success. To meet demand, Hermès opened its 23rd leather workshop in Riom, France, and plans three more by 2027.

Other Métiers Shine, Watches Lag

Ready-to-wear and accessories grew 15%, driven by the Spring-Summer 2025 Collections. The “Other Hermès” sector (jewelry, home) rose 17%, and perfumes and beauty increased 9% with the launch of Barénia fragrance. However, watches saw a 4% decline, attributed to a tough market and a high comparison base.

Pricing, Tariffs, and the “Wirkin” Phenomenon

Dumas confirmed that 2025 price increases will average 6-7%, reflecting production costs and currency shifts. On potential US tariffs, he said extra costs would be passed on to American clients, who might choose to shop in Paris instead. He brushed off the “Wirkin” (Walmart’s Birkin lookalike) with a “no comment,” but stressed Hermès actively fights counterfeiting.

Expansion and Employee Rewards

Hermès plans five new store openings in 2025, including one in Florence on Valentine’s Day, and is exploring haute couture and skincare. Employees worldwide will receive a €4,500 bonus, and shareholders are proposed a €16 dividend.

Hermès 2024 annual revenue growth

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Hermès Birkin Kelly demand 2024

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Hermès new workshops 2025

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