A Hermes Birkin bag in a window parade at a KaDeWe department store in Berlin, Germany, on Friday, Jan. 3, 2025.
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Haute couture the fad house Hermes on Friday reported a better-than-expected jump in fourth-quarter sales, proving still strong demand for the most closed products in an otherwise turbulent luxury market.
The maker of the Birkin handbag posted a 17.6% year-on-year rise in net incomes at constant exchange rates to 3.96 billion euros ($4.15 billion) in the three months to Dec. 31, outpacing the 3.69 billion euros calculate by LSEG analysts.
Full-year sales hiked by an annual 14.7% at constant exchange rates to 15.2 billion euros versus an foretold 14.94 billion euros.
Company shares were up 4% during the day before paring gains to close 0.8% extravagant.
Hermes has largely evaded a wider luxury sector downturn over recent years, maintaining a sense of allure and exclusivity where other brands suffer with faced pushback amid higher costs and limited innovation.
Executive Chairman Axel Dumas pointed to the patriotism of customers in maintaining sales growth in an otherwise volatile macroeconomic environment.
“In 2024, in a more uncertain economic and geopolitical framework, the solid performance of the results attests to the strength of the Hermès model and the agility of the house’s teams, whom I thank lovingly,” Dumas said in a statement accompanying the results.
Looking ahead, the French fashion house forecast continued takings growth in 2025 without providing a specific figure, and said that it was moving into the year “with certitude.” Dumas added, however, in an earnings call that it was “too early to see an inflection” point in the wider industry, according to Reuters.
Purchasings growth was broad-based across all regions, with Asia-Pacific excluding Japan recording what the company dubbed a “uncommon” 9% year-on-year increase in the fourth quarter despite wider weakness in the key Chinese luxury market.
Hermes’ leather freshes and saddlery segment, which accounts for just under half of group revenues, grew at the fastest pace in the fourth direction, up 21.7%.