Birkin buyers boost Hermès' “outstanding" financial performance
Hermès, which is arguably one of the world's most exclusive fashion brands on the market, has reported 'outstanding sales' for fiscal year 2023, with revenues amounting to £11.4 billion (€13.4 billion) - up by 21% at constant exchange rates.
The brand, which has a constant string of customers after its Birkin and Kelly handbags, has reported a recurring operating income of £4,820 million (€5,650 million). Net profit group share reached £3,680 million (€4.311 million), an increase of 28%.
In the fourth quarter 2023, sales reached £2,872 million (€3,364 million), up 18% at constant exchange rates and 13% at current exchange rates.
Geographically, all areas posted a 'solid performance' with homogeneous growth of around 20%. Sales increased both in the group’s stores, up by 20%, and in wholesale activities, up by 24%, driven by the travel retail business.
Europe saw a sales increase of 20%, thanks to the 'loyalty of local clients and to the dynamic of tourists flows'.
Category Breakdown:
- The Leather Goods and Saddlery métier, up by 17%
- The Ready-to-wear and Accessories sector, up by 28%
- The Silk and Textiles sector, up by16%
- The Perfume and Beauty sector, up by 12%
- The Watches métier, up by 23%
- The Other Hermès sectors, which include Jewellery and Homeware, up by 26%
Axel Dumas, Executive Chairman of Hermès, said: "In 2023, Hermès has once again cultivated its singularity and achieved an outstanding performance in all métiers and across all regions against a high base. These solid results reflect the strong desirability of our collections and the commitment and talent of the house’s women and men. I thank them all warmly."
Looking ahead, the group has moved into 2024 with confidence.
