Hermès Plans 8% Price Hike as Annual Sales Top $14 Billion
9 Feb 2024
Fourth-quarter sales at the leather goods powerhouse rose by 18 percent, defying the wider slowdown in luxury demand.
Hermès reported another year of chart-topping growth, with annual sales rising 21 percent to €13.4 billion ($14.4 billion). Fourth-quarter sales rose 18 percent, beating expectations and defying the wider slowdown in luxury demand.
The French leather goods powerhouse has long been luxury’s most defensive player, with pent-up demand for its sold-out Birkin and Kelly bags helping the brand to fend off downturns in the broader market.
In recent years, Hermès has also grown sales across categories as top-spending bag collectors buy deeply across the company’s product assortment in a bid to curry favour with sales associates and young aspirational clients learn to recognise (and covet) signature items like enamel bracelets and anchor chain earrings. The brand’s fastest growing categories last year were ready-to-wear and fashion accessories (up 28 percent), jewellery and homeware (up 26 percent), and watches (up 23 percent), the brand said.
Hermès joins a handful of players that have continued to expand amid a broader slowdown for luxury. Louis Vuitton- and Dior-owner LVMH, Cartier-owner Richemont and Italian top-end ready-to-wear specialists Zegna and Brunello Cucinelli all reported double-digit growth in the fourth quarter, while sales were negative at Gucci-owner Kering, Burberry and Ferragamo.
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