Shares in luxury handbag retailer Hermès saw an increase this morning following the family-owned company's announcement of another impressive set of results.
The firm reported a revenue of €15.2bn (£12.66bn) for 2024, marking a 15 per cent year-on-year rise, as reported by .
The share price of the Euronext-listed company climbed 2.5 per cent in early trades, indicating a 34 percent increase over the past year and a threefold surge since 2020.
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Operating income reached €6.2bn—equivalent to 40.5 per cent of sales—while net profit amounted to €4.6bn—30.3 per cent of sales.
Hermès has managed to remain unaffected by the widespread downturn in the luxury sector over the past two years, a resilience analysts attribute to its strong brand identity and the coveted status of its Birkin bags.
"In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the Hermès model and the agility of the house’s teams, whom I thank warmly," said Axel Dumas, Executive Chairman of Hermès.
He added: "While preserving the group’s major balances and its responsibility as an employer, the house is staying the course, attached more than ever to its fundamental values of quality, creativity and savoir-faire."
Notably, even sales in Asia increased, a remarkable feat considering the global luxury downturn has been largely driven by falling sales in this region.
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Sales in Asia, excluding Japan, saw a 7 per cent increase, while sales in Japan surged by 23 per cent. The Americas and Europe also experienced robust growth with sales rising by 15 per cent and 19 per cent respectively.
Hermès has proposed a dividend of €16.00 per share, with an interim dividend of €3.50 set to be paid on February 19. "In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates," the company stated.