Hermes posts record annual sales and net profit

PARIS – French luxury giant Hermes posted on Friday record annual sales and net profit, with plans to reward all employees worldwide with a bonus following strong growth in every region in 2023.

The group reported a profit of 4.3 billion euros ($4.6 billion), up 28 percent from 2022, on sales that surged 16 percent at current exchange rates to 13.4 billion euros.

“In 2023, Hermes has once again cultivated its singularity and achieved an outstanding performance in all metiers (business) and across all regions against a high base,” executive chairman Axel Dumas said in an earning statement.

The group said all employees worldwide would get a 4,000-euro bonus early this year as part of “its policy of sharing the fruits of growth with all those who contribute to it on a daily basis”.

Hermes said sales rose by 14.5 percent in Japan and 12.9 percent in the rest of the Asia-Pacific region, with the group opening its 33rd store in China, a major market for luxury brands.

Japan and Asia-Pacific together were the biggest market for Hermes, with total sales of 7.5 billion euros.

Sales rose 19 percent to three billion euros in Europe and 17.1 percent to 2.5 billion euros in the Americas.

In its outlook for 2024, the company said: “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 said it would propose to increase dividends to 15 euros per share, up from 13 euros in 2022, at its next general meeting in April.

“In addition, an exceptional dividend of 10 euros per share will be proposed to the General meeting,” it added.

“It’s a show of confidence for the coming year,” Dumas said. – AFP / pic TMR FILE