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Hermès records revenues of £7.5 billion and return to pre-pandemic growth levels in Europe

Camilla Rydzek
18 February 2022

Luxury brand Hermès has reported "outstanding performance", with revenues reaching £7.5 billion (€9 billion) for the financial year ending 31 December 2021.

Revenues increased by 42% at constant exchange rates compared to 2020, and by 33% compared to two years ago. The group further showed a net profit of £2.04 billion (€2.45 billion), representing an increase of 77% against 2020 (£1.16 billion).

Hermès recorded its strongest growth in America, recording a 57% and 24% increase compared to 2020 and 2019, despite restrictions imposed in several US cities in the fourth quarter.

Sales in Europe, excluding France, recorded a strong second half of the year seeing 37% and 10% against 2020 and 2019 respectively as its local customer base showed "remarkable development" which partly offset the lack of tourist traffic.

Sales at its stores increased by 44% and 41% against 2020 and 2019 respectively. Wholesale activities also improved despite travel retail restraints, increasing by 24%.

Axel Dumas, Executive Chairman of Hermès, said: "I thank above all the passion and quality of our teams’ work, because together we have made 2021 an exceptional year. Abundant creativity, unique know-how and the quality of materials have driven the growth of our sixteen métiers. Hermès is very dedicated to its role as a committed and responsible company and continues its commitments to job creation around the world and to regional regeneration in France, while reinforcing its ambitious environmental objectives."

At the end of December 2021 all of the luxury brand's categories also saw growth, with leather goods and saddlery division standing out with "exceptional sales", recording an increase of 29% and 23% against 2020 and 2019 respectively.

The luxury label also shared that its ready-to-wear and accessories business line increased by 50% compared to 2020 and 44% against 2019, showing significant growth.

It further revealed that it had added nearly 1,000 people to its workforce during 2021.

Hermès had recorded "outstanding improvement" in non-financial ratings during the year, achieving an "A" rating in US-based finance company MSCI's analysis of the firm's resilience to environmental, social and governance risks. It was also included in the CAC40 ESG index, after it was ranked by VigeoEiris in the "Advanced" category. Sustainalytics ranked Hermès the second best player in the Textiles and Clothing sector.

In its outlook for 2022 the group shared that it faced difficulty in assessing the impacts of the COVID-19 pandemic but remained confident in the future referencing its business model, distribution network and customer's loyalty as key factors. "Lighthearted will be the prevailing theme in 2022" Hermès said, adding that in the medium-term it further confirmed ambitious goals for revenue growth and that it would pursue long-term development strategy "based on creativity, maintaining control over know-how and singular communication."

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