Hermès Reports €3.96 Billion Q4 Revenue Rewards Employees with €4500 Bonus

Hermès Reports €3.96 Billion Q4 Revenue Rewards Employees with €4500 Bonus

French luxury powerhouse Hermès has reported better-than-expected fourth-quarter results, sending its stock to an all-time high. The company, known for its ultra-premium Birkin bags, recorded a staggering 3.96 billion euros ($4.16 billion) in sales, surpassing analysts’ forecasts of 3.69 billion euros. This marks an 18% increase in revenue for the final quarter of 2024.

For the full year, Hermès posted 15.2 billion euros in revenue, reflecting a 15% annual growth.

On Friday, Hermès’ stock jumped by 4.2% in Paris, boosting its market capitalization above 300 billion euros for the first time. The company has seen a 23% rise in stock value this year and an astonishing 300% increase over the past five years.

Hermès’ impressive performance brings it closer to its biggest competitor, LVMH Moët Hennessy Louis Vuitton, in terms of market capitalization. Despite Hermès generating only a fifth of LVMH’s revenue, the company continues to gain momentum.

LVMH, currently valued at 358 billion euros, has experienced a 10% stock decline over the past 12 months, though it has recovered 13% in early 2024.

A key factor in Hermès’ continued success is its pricing strategy. The company implemented a 6% to 7% price increase this year, positioning itself as an exclusive luxury brand that remains unaffected by economic slowdowns impacting other players in the industry.

While Hermès thrives, other luxury brands are struggling. Earlier this week, Gucci’s parent company Kering reported a 12% sales decline, while Burberry announced a strategic turnaround plan in November to revive its revenues.

To reward its employees for their contribution, Hermès announced a special bonus of 4,500 euros ($4,723) per employee.

The company, which employs over 25,000 staff members worldwide, has consistently rewarded its workforce with increasing year-end bonuses over the years.

  • 2020: 1,250 euros bonus
  • 2021: 3,000 euros bonus
  • 2022 & 2023: 4,000 euros bonus
  • 2024: 4,500 euros bonus

This move reflects Hermès’ commitment as a responsible employer, ensuring that its success is shared with the employees who drive its growth.

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Arshad

Arshad

He is an engineer specializing in Leather Technology, known for his keen interest in analyzing global leather, footwear, and leather goods markets & his ability to make complex information clear & accessible. 

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Hermès Reports €3.96 Billion Q4 Revenue Rewards Employees with €4500 Bonus