Hermès Posts Division Accelerates

In a luxury market often described as cooling, Hermès has once again bucked the trend, delivering what Executive Chairman Axel Dumas called “outstanding” results for 2024. The French maison reported consolidated revenue of €15.2 billion, a 15% increase at constant exchange rates and 13% at current rates compared to 2023. The fourth quarter alone accelerated with an 18% rise, powered by robust demand in the Americas.

Dumas attributed the performance to the strength of the Hermès model and the agility of its teams, noting that the house remains anchored in its values of quality, creativity, and savoir-faire. “While preserving the group’s major balances and its responsibility as an employer, the house is staying the course,” he said.

Regional Momentum: Double-Digit Growth Across the Board

Every major region contributed double-digit growth. Asia as a whole rose 10% over 2023, with Japan surging 23%. Asia excluding Japan—Hermès’ largest market, which includes China—grew 7% on solid sales despite a challenging Chinese consumer climate. Europe excluding France climbed 19%, while France itself rose 13%, buoyed by local demand, client loyalty, and tourist traffic. The Americas posted a 15% increase.

Leather Goods and Saddlery Lead the Charge

The division responsible for the Birkin and Kelly remains the engine of growth. Leather Goods and Saddlery, Hermès’ largest métier, saw revenue climb 18% in 2024, and its share of total company revenue expanded from 41% to 43%. New designs such as the Arçon and the Hermès Della Cavalleria Élan fueled demand, while production capacity was expanded with the opening of a 23rd leather goods workshop in Riom (Puy-de-Dôme).

Other métiers also performed well. Ready-to-wear and Accessories grew 15%, driven by the Spring-Summer 2025 collections for men and women. The “Other Hermès Sector,” which includes jewelry and home goods, rose 17%. Perfume and Beauty recorded 9% growth, supported by the launch of the new women’s fragrance, Barénia.

Hermès Rouge Radieux Togo Garden Party Neo 23

Watches were the lone weak spot, with a 4% revenue decline amid a tougher market and a high comparison base.

Production and Retail Expansion

To meet relentless demand, Hermès plans three new workshops over the next three years: L’Isle-d’Espagnac (Charente) in 2025, Loupes (Gironde) in 2026, and Charleville-Mézières (Ardennes) in 2027. The house also intends to open five new stores in 2025, including a Florence boutique that debuted on Valentine’s Day, alongside enlargements of existing locations worldwide.

Beyond retail, Hermès is exploring haute couture, likely for 2026 or 2027, and developing skin care products. Dumas said the couture idea emerged from an interview and generated internal interest.

Pricing, Tariffs, and the US Market

On pricing, Dumas reiterated that Hermès adjusts prices based on production costs and currency fluctuations. For 2025, increases will be 6–7%, phased throughout the year, though handbags saw an adjustment last month. When asked about potential US tariffs, Dumas appeared unconcerned, stating that any additional charges would be passed on to American purchasers, who he expects will understand. Clients can choose to buy at home or travel to Paris—he mentioned FSH and Paris hotels—but he gave no indication of moving production to the United States.

Counterfeits, Authenticity, and the “Wirkin”

The elephant in the room—the Walmart Birkin, or “Wirkin”—was addressed via a question. Dumas offered a “no comment” on fakes, which he called “Le Dupe,” but emphasized that Hermès takes counterfeiting seriously, fights it with all available means, and is quite effective. He admitted irritation at those who steal others’ creativity and underscored brand authenticity, noting that Hermès does not pay anyone to wear its products.

Notably, the pending California antitrust lawsuit—where plaintiffs allege they were told to buy other Hermès products as a prerequisite for Birkins and Kellys—was not raised during the call.

Employees, Dividends, and Looking Ahead

Dumas announced a €4,500 bonus for employees worldwide. The company also proposed a dividend of €16 per share, to be voted on at the April 2025 general meeting, with €3 paid in advance. As Hermès celebrates its 2024 results and remains optimistic, the question for many remains: how are your chances of getting that Birkin or Kelly?