Hermes Birkin bag at a window exhibition at the Kadzewe department store in Berlin, Germany, on Friday, January 3, 2025.
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Haute couture fashion house Hermes On Friday, a better sales leap in the fourth quarter was recorded than the expected, which turned out to be a strong demand for the most exclusive products on the turbulent luxury market.
The producer of Birkin's purse recorded an increase in revenues from year to year by 17.6% with a continuous exchange rate to EUR 3.96 billion ($ 4.15 billion) within three months to December 31, ahead of the forecast of EUR 3.69 billion by LSEG analysts .
Year -round sales increased by 14.7% with a fixed exchange rate to EUR 15.2 billion compared to expected EUR 14.94 billion.
The company's shares increased by 4.19% by 08:08 in London, shortly after opening the market.
In recent years, Hermes has largely avoided a wider slowdown in the luxury sector, maintaining a sense of charm and exclusivity, in which other brands have faced withdrawal in connection with higher costs and limited innovations.
Executive Chairman Axel Dumas pointed to customer loyalty in maintaining sales growth in an unstable macroeconomic environment.
“In 2024, in a more uncertain economic and geopolitical context, solid results testify to the strength of the Hermès model and the agility of the teams of the house, which I grace,” Dumas said in a statement accompanying the results.
Looking to the future, the forecast of the French fashion house continued to increase revenues in 2025, without providing a specific number, and said that he was going to “certainly” to a year. According to Reuters, however, Dumas added in the call for earnings that it was “too early to see inflection” in a wider industry.
The increase in sales was extensive in all regions, and Asia-Pacific, excluding Japan, records what the company called “extraordinary” 9% increase from year to year in the fourth quarter, despite the wider weakness on the key Chinese luxury market.
The leather segment of Hermes and Saddlera, which is slightly less than half of the group revenues, increased at the fastest pace at the fourth quarter, which is an increase of 21.7%.