Hermes upbeat as sales comfortably beat forecasts
By Abigail Townsend
Date: Friday 14 Feb 2025
(Sharecast News) - France's Hermes International posted better-than-expected sales on Friday and struck an upbeat tone for the current year, despite ongoing geopolitical uncertainties.
The Paris-based maker of the Birkin bag posted a near 18% jump in fourth-quarter revenues, to €3.96bn. Analysts had been expecting sales closer to €3.69bn.
Full-year sales were also stronger than the €14.94bn forecast, rising 15% on a constant currency basis to €15.2bn. Annual operating income rose to €6.15bn from €5.65bn, while net profit reached €4.6bn.
In Asia excluding Japan, sales grew by 7% over the year, and by 9% in the final three months, despite the ongoing downturn in China. Hermes said it was a "remarkable" increase.
Sales in the Americas jumped 15.5%, by 13.5% in Hermes' home market and by 19% in the rest of Europe.
Its leather goods and saddlery segment, which accounts for nearly half of all group revenues, reported a 18% jump in annual sales and a 21.5% improvement in the last three months of the year.
Hermes' hugely in-demand Birkin bags, for which there are long waiting lists, sell for upwards of £10,000.
Axel Dumas, executive chair, said: "In a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the Hermes model and the agility of the house's teams."
Looking ahead, Hermes said: "In a more complex economic and geopolitical context, the group has moved into 2025 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients."
As at 0900 GMT Hermes' Paris-listed shares were up 3%.
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