Luxury may be slowing down, but Hermès continues to accelerate. Despite broader luxury market headwinds, Hermès experienced another year of stellar growth, led by the division responsible for the coveted Birkin and Kelly handbags. Notwithstanding the difficulty of obtaining these bags, nor the availability of Walmart’s Wirkin, demand continues to outstrip supply. But there’s also a warning that US clients may end up paying more if US tariff policy changes.
Describing 2024’s results as “outstanding,” Hermès reported €15.2 billion in revenue, marking a 15% increase at constant exchange rates (13% at current rates) compared to 2023. The fourth quarter alone saw an 18% rise, driven by strong performance in the Americas.
Axel Dumas, Executive Chairman of Hermès, stated:
“In 2024, in a more uncertain economic and geopolitical context, 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 warmly. While preserving the group’s major balances and its responsibility as an employer, the house is staying the course, attached more than ever to its fundamental values of quality, creativity and savoir-faire.”
Geographically, Hermès saw double-digit growth across all regions, broadly defined. Asia as a whole, was up 10% over 2023, with Japan showing 23% growth. However, Asia (excluding Japan) – Hermès’ largest area which includes China – posted a 7% increase driven by “solid” sales notwithstanding the difficulties in China and concerns about consumers there.
Revenue in Europe (excluding France) grew by 19%, and France saw a 13% rise, fueled by strong local demand, client loyalty, and tourist flows. In the Americas, revenue rose 15% over 2023.
As for Hermès métiers, nearly all categories showed solid growth, except for Watches. Unsurprisingly, Hermès’ largest metier, Leather Goods and Saddlery, led the way, with an 18% revenue increase in 2024. Interestingly, this group’s share of company revenue increased from 41% to 43%.
Leather goods, in particular, thrived, thanks to new designs such as the Arçon and Hermès Della Cavalleria Élan models. In response to surging demand, Hermès expanded production capacity, opening its 23rd leather goods workshop in Riom (Puy-de-Dôme).
Other métiers also performed well. Ready-to-wear and Accessories saw a 15% revenue increase, thanks to the success of the Spring-Summer 2025 collections for both men and women. The Other Hermès Sector, which includes jewelry and home goods, grew 17%. Meanwhile, Perfume and Beauty recorded a steady 9% growth, fueled by the launch of the new women’s fragrance, Barénia.
Read also: Hermès Introduces 11 New Handbags for Spring-Summer 2025
Image courtesy: WWD
On a less positive note, Hermès’ Watch line continues to face challenges. Watch business recorded a 4% revenue decline, impacted by a tougher market environment and a high comparison base.
Looking ahead, Hermès plans to open three new workshops over the next three years—one in L’Isle-d’Espagnac (Charente) in 2025, another in Loupes (Gironde) in 2026, and a third in Charleville-Mézières (Ardennes) in 2027. Whether this will ultimately be enough to satisfy the every-growing demand remains to be seen.
Hermès plans five new store openings in 2025, including the new Florence, Italy boutique today (Valentine’s Day). Stores in other locations around the world have planned enlargements as well.
And, some measure of Hermès haute couture is in the works, likely for 2026 or 2027. Dumas said the idea came out of an interview and teams were interested. Additionally, skin care products also are in the works.
Let’s talk pricing, especially for purchasers in the United States. Dumas reiterated that Hermès increases prices based on cost of production and currency fluctuations, something he has said many times before. For 2025, those increases are 6-7%, rolling in throughout the year, though handbags took a hit last month.
However, when asked about the prospect of increased tariffs by the United States, Dumas said he is not particularly worried about tariffs. He said these extra charges will be passed on to US purchasers and he expects Americans will understand. Whether these clients decide to pay up and purchase at home, or travel to Paris (he mentioned FSH and Paris hotels), will be their choice. Dumas did not suggest any consideration of moving production to the United States.
One “elephant in the room” was addressed through a question – about the Walmart Birkin, aka the “Wirkin.” Dumas gave the “corporate answer” of “no comment” about fakes, which he called “Le Dupe”. However, Dumas did say that Hermès takes counterfeiting seriously, fights with all available means, and is quite good at it. He admitted that it irritates him to see people stealing the creativity of others.
Dumas also spoke about brand authenticity in this context. He said there is no marketing and Hermès does not pay people to wear its products. In case you were wondering.
Notably, no one raised the issue of the California antitrust lawsuit. In that pending case, three plaintiffs complained they could not purchase Birkins and Kellys. They further allege they were told buying other Hermès products was a prerequisite, and despite doing so, they were still unable to get these bags.
As for Hermès employees, Dumas announced that employees worldwide will receive a €4500 bonus. The company also proposed a dividend to shareholders of €16 per share, to be voted on in April 2025 at the general meeting of shareholders, with €3 to be paid in advance.
As Hermès revels in its 2024 results and remains optimistic about its prospects, how are you feeling about your chances of getting that Birkin or Kelly? And what are your shopping plans? Let us know.
Read related articles:
Hermès Arçon: Revealing a Staple in My Luxury Wardrobe
Hermès Reports Solid Q3 Growth, Driven by Iconic Bags and New Designs
Hermès Introduces 11 New Handbags for Spring-Summer 2025
New Confirmed Hermès Prices in Europe 2025
US Hermès Price Increase 2025 – Here are the New Prices
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Updated: February 18th, 2025
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