French luxury brand Hermès has posted impressive financial results for the first half of 2024, with consolidated revenue reaching €7.5 billion. This marks a significant 15% increase at constant exchange rates and a 12% rise at current exchange rates compared to the same period in 2023.
The luxury powerhouse also reported a recurring operating income of €3.1 billion, which represents 42% of sales. The company’s net profit (group share) stood at €2.4 billion, equating to 32% of sales.
In the second quarter alone, Hermès achieved sales of €3.7 billion, reflecting a 13% increase at constant exchange rates. The growth trajectory has been particularly strong in the Leather Goods and Saddlery division, which saw a remarkable 19% surge. This growth is attributed to an expansion in production capacity and a sustained demand for Hermès’ iconic leather products.
Hermès has continued to enrich its collections with new formats, notably the Della Cavalleria Élan and the Kelly Mini clouté bags, which have been well-received by consumers. The company’s commitment to expanding production capabilities is evident with the upcoming opening of the Riom (Puy-de-Dôme) leather goods production site in September 2024.
Additionally, Hermès laid the foundation stones for two new production sites in Isle-d’Espagnac (Charente) in April and Loupes (Gironde) in May, which are scheduled to commence operations in 2025 and 2026, respectively.
“The solid first-half results, in a more complex economic and geopolitical context, reflect the strength of Hermès’ model. The group is confident in the future and is continuing to invest, to pursue its vertical integration projects and to create new jobs, while remaining true to its values.”
Axel Dumas, Executive Chairman of Hermès
In conclusion, Hermès’ strategic investments in production capacity, combined with its unwavering commitment to quality and craftsmanship, have paid off significantly in the first half of 2024. As the company continues to expand and innovate, it remains well-positioned for sustained growth and profitability in the future.
