Article
Hermès Defies Luxury Slowdown with Robust Q3 2024 Results, Led by Iconic Handbags
In a period when many luxury houses are issuing cautious outlooks, Hermès has once again demonstrated its resilience, posting solid growth for the third quarter and first nine months of 2024. The French maison reported revenue of €11.2 billion by the end of September, a 14% increase at constant exchange rates (11% at current rates) compared to the same period in 2023. For the third quarter alone, sales rose 11% at constant exchange rates, a slight deceleration from the previous year's exceptional performance, which the company attributes to a high comparison base in Asia.
Executive Commentary and Strategic Outlook
Axel Dumas, Executive Chairman of Hermès, expressed gratitude to employees and customers, emphasizing the brand's unique model as a pillar of stability. "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," he stated. "Thanks to the singularity of its model, Hermès is continuing its recruitments and long-term investments." This confidence is reflected in the company's ongoing expansion, including the opening of its twenty-third leather goods workshop in France, with more facilities planned.
Geographic Performance: China Slows, Japan and Americas Surge
Breaking down the numbers by region, Hermès' largest market—Asia excluding Japan—recorded 7% growth for the first nine months, though Q3 saw a mere 1% uptick. The slowdown is linked to reduced foot traffic and a challenging comparison with the previous year, when revenues in the region jumped 21%. In contrast, Japan emerged as a standout performer, with sales climbing 23% in the first three quarters. Europe (excluding France) posted an 18% rise, while the Americas showed "solid momentum" with a 13% increase. France, despite a "slight slowdown" in store traffic during the Summer Olympic Games, still achieved 14% growth.
Product Categories: Leather Goods Lead, Watches Lag
Among Hermès' métiers, all segments delivered positive results except watches. The flagship Leather Goods and Saddlery division, which includes the coveted Birkin and Kelly bags, grew 17% for the year and 14% in Q3, underscoring sustained demand. New designs such as the Constance Élan and Bolide à dos have also contributed to this momentum. The "Other Hermès Sectors"—encompassing homewares and jewelry—matched the leather goods growth at 17%. Ready-to-wear and accessories, now the second-largest division, advanced 15%. Perfume and Beauty rose 7%, while Silk and Textiles saw a modest 2% increase.
Challenges and Market Dynamics
Despite its robust performance, Hermès faces certain headwinds. A California antitrust lawsuit alleges that the brand conditions the sale of Birkin and Kelly bags on the purchase of other items, a practice some shoppers perceive as coercive. While the legal merits are debated, consumer frustration is evident, with some reporting increased availability and declining resale prices for these hard-to-get bags. Additionally, as handbag prices continue to climb, questions arise about the sustainability of such pricing. Will the allure of Hermès endure, or will the difficulty of acquisition eventually deter even the most devoted clientele? Only time will tell.
Hermès Q3 2024 revenue growth
Hermès financial results 2024
Hermès Birkin Kelly sales growth
Hermès luxury market performance 2024
Hermès new leather goods designs 2024
What are Hermès Q3 2024 earnings?
How much revenue did Hermès generate in 2024? 2026
Why is Hermès outperforming other luxury brands?
Which Hermès products drove growth in Q3 2024?
What is the outlook for Hermès in 2025?
How does Hermès compare to LVMH in 2024?
Is there a lawsuit against Hermès for Birkin sales?
Are Hermès bag prices increasing?
What is the secondary market trend for Hermès bags?
How has Hermès performed in China recently?
