The cost-of-living crisis does not apply to Hermès: the French luxury group has had a particularly good year, crossing the ten billion euro sales mark for the first time and also posting record profits.
No downturn in China
‘Astonishment’ is the theme of the year at Hermès, and the results the French luxury group has posted today are nothing short of astonishing, indeed. Sales rose by a whopping 23 % to 11.6 billion euros – the first time its sales exceeded ten billion euros. Operating profit rose 33 % to 4.7 billion euros, also a record – and (even) better than what observers had expected.
Remarkably, the company showed no weakening in the fourth quarter: while luxury competitors like Kering and LVMH suffered from the new coronavirus spikes in China, Hermès’ sales there remained on track.
The luxury group saw its strongest growth in America (+ 32 %), while in Europe and Asia sales grew by 22 % each. The apparel and accessories segment was up 36 %, the watches division even improved by 46 %.
The luxury sector is not affected by the cost-of-living crisis, that much is clear. Despite the economic, geopolitical and monetary uncertainties worldwide, the group therefore confirmed an “ambitious goal” for sales growth in the current financial year.