Hermès Q3 New Designs | LUX-HANDBAGS

Hermès continues to defy the broader luxury slowdown, posting robust financial results for the third quarter and first nine months of 2024. The French maison reported revenue of €11.2 billion at the end of September, a 14% increase at constant exchange rates (11% at current rates) compared to the same period in 2023. For Q3 alone, revenue rose 11% at constant exchange rates, a slight deceleration attributed to a high comparison base in Asia.

Executive Chairman Axel Dumas commented, “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. Thanks to the singularity of its model, Hermès is continuing its recruitments and long-term investments.”

Regional Performance: Asia Slows, Japan and Europe Shine

Hermès’ largest market, Asia excluding Japan, grew 7% in the first nine months, but Q3 saw only 1% growth due to reduced foot traffic and a tough comparison with 2023’s 21% surge. Japan continued its strong momentum with 23% growth, while Europe excluding France rose 18%. The Americas showed solid momentum with a 13% increase, and France grew 14% despite a slight slowdown from the summer Olympics.

Leather Goods and Saddlery Lead the Way

The Leather Goods and Saddlery division, Hermès’ largest business line, posted 17% revenue growth for the nine-month period and 14% in Q3. This performance is largely driven by sustained demand for the Birkin and Kelly, as well as new introductions like the Constance Élan and Bolide à dos. To meet this demand, Hermès opened its 23rd leather goods workshop in France, with more facilities planned.

Other Hermès Sectors, which include homewares and jewelry, also grew 17%. Ready-to-wear and accessories, now the second-largest division, rose 15%. Perfume and Beauty increased 7%, while Silk and Textiles grew 2%. Watches were the only category to report a decline.

Challenges Amid Success

Despite the strong numbers, Hermès faces headwinds. A California antitrust lawsuit alleges that the brand requires customers to purchase other products to access Birkins and Kellys. Additionally, some shoppers report increased availability on the secondary market and declining resale prices for hard-to-get bags. As prices continue to rise, questions linger about whether demand will sustain.

Hermès Rouge Radieux Togo Garden Party Neo 23

For now, Hermès remains a standout in the luxury sector, with its unique model and loyal clientele driving consistent growth. As Dumas has noted, in uncertain times, consumers flock to quality—and Hermès sits at the pinnacle.

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