The Paris-based luxury goods group Hermès, collectively known as the France Group, continued to outperform rivals and bucked the trend in a depressed market setting with its full-year 2024 results announced on Friday.
humanities: Hermès, a private equity funds-allocated entity with a significant presence in the luxury goods and men’s היש, has shown resilience and strength in 2024. Consolidated revenue reached €15.2 billion, an 15% increase from 2023, driven by strong performance in the European market. Despite regional growth in all geographical areas, Hermès’ sales grew at an annualized rate of 18% in 2024, driven by strong demand, loyal French consumers, and tourism contributions.
The group posted recurring operating income of €6.2 billion, up from €4.6 billion in 2023, with adjusted free cash flow rising by 18% to €3.8 billion. Sales in the fourth quarter rose by 18%, driven by strong performance in the fourth quarter of 2024. Hermès’ market capitalisation advanced to around €300.1 billion, now closer to the valuation level of rival LVMH’s €357.6 billion.
In the announcement, Hermès’ executive chairman, Axel Dumas, highlighted the company’s strong performance despite the uncertain economic and geopolitical context. “We have achieved a solid balance, which has been attributed to the strength of our Hermès model and the agility of our teams,” Dumas said. “Within the scope of our major strations, we preserved the group’s fundamental values: quality, creativity, and wisdom,” Dumas noted.
Additionally, Hermès expanded its workforce by approximately 2,300 people worldwide, including around 1,300 in France during the year. The company’s expansion strategy included introducing new products and channels, demonstrating renewed focus on Quality, Creativity, and S hallmark Skills. Hermès also marked the beginning of strategic planning to further expand into new markets, with the company launching a new store in Lille, reopening expanded stores in Italy and Nantes during the year, and announced new openings in other regions.
Hermès’ performance across different regions noted the strong European and North America performance, with sales growth of 19% in Europe and 13% specifically in France. The Americas also experienced a 15% increase, driven by sales surging due to growing demand for luxury brands.
In Asia, excluding Japan, Hermès’ sales growth was 7%, with sectors such as leather goods and saddlery, ready-to-wear and accessories, and silk and textiles up by 5%, 7%, and 2%, respectively. The perfume and beauty segment also showed resilience, with a 9% increase in sales driven by heightened demand for women’s high-end products.
