With double-digit growth in sales and net income, and an all-time record in profitability, the saddler has not been affected by the normalization of the sector. It is demonstrating great dynamism in all its markets and business lines.
Luxury goods results come one after the other for France’s industry leaders.
After the announcement of Lvmh’s good performance in 2023, followed by Kering’s poor results, Hermès continues to race ahead.
Not only was the saddler’s momentum very strong again last year, but it has never been so profitable. Its annual recurring operating margin reached an all-time high of 42.1%, against a target of 40.5% for 2022. Operating income recurring grew by 20% to 5.6 million euros.
Antoine Fraysse-Soulier, Head of Market Analysis at eToro, hails “an operating margin that pulverizes that of its competitors, coming in at 42% compared with 26% for LVMH or 24% for Kering, for example.”
This performance is due both to “strong sales growth and the favorable impact of currency hedging”.
Double-digit growth in sales and net income
Hermès sales for 2023 soared by 21% at constant exchange rates (+16% at current exchange rates) to 13.4 billion euros.
In the fourth quarter, sales remained strong (+18% at constant exchange rates and +13% at current exchange rates), reaching 3.36 billion euros, “despite the particularly high basis of comparison in America and Asia”. On average, analysts were expecting lower fourth-quarter sales of 3.28 billion euros.
To continue reading this article, subscribe or log in to your account
Discover our plans
- Every day, keep up to date with the latest business news from the world of luxury.
- Receive the essential luxury business news by email every week
- Access all our events
- The Luxury Journals and Luxus Magazine in print and digital versions
Subscribe for 1€
Become an active member of the community of luxury leaders.
Read also > HERMÈS LAUNCHES ITS NEW MAKE-UP RANGE: LE REGARD
Featured Photo: © Hermès
