Hermès International reports its third-quarter financial results showcasing continued growth fuelled by geographic diversity and sector strength.
Hermès’ financial performance highlights its resilience and adaptability across global markets and diverse product categories. Image: hermes.com
By end-September 2024, the group’s consolidated revenue reached €11.2 billion, reflecting a 14 percent increase at constant exchange rates and an 11 percent increase at current exchange rates compared to the same period in 2023. This robust performance demonstrates Hermès’ resilience through strategic investments and an unwavering focus on quality.
“In a more uncertain economic and geopolitical context, I want to thank all employees for the robust third-quarter performance, and our customers for their loyalty. Thanks to the singularity of its model, Hermès is continuing its recruitment and long-term investments,” said Axel Dumas, Executive Chairman of Hermès.
All the métiers, with the exception of the Watches métier, posted solid growth. Ready-to-wear and Accessories (+15%) confirmed its sustained momentum. Silk and Textiles(+2%) grew in the third quarter. Perfume and Beauty (+7%) achieved steady growth in the third quarter. In September, the house successfully launched the new women’s perfume, Barénia. In a more challenging context, the Watches métier (-6%) was penalised by a high comparison base due to exclusive events in the third quarter last year. The Other Hermès sectors (+17%), which include Jewellery and the Home universe, pursued their strong growth, illustrating the singularity and creativity of the house.
Hermès’ third-quarter financial performance highlights its resilience and adaptability across global markets and diverse product categories. The luxury fashion brand’s forward-looking strategy focuses on sustained growth in key markets while deepening its commitment to sustainability. By combining artisanal expertise, a well-balanced geographic reach, and a strong dedication to ESG goals, Hermès is positioned to maintain robust growth and reinforce its leadership in the global luxury sector.
True to its commitment to local anchoring and job creation, the maison inaugurated the Riom leather goods workshop in September. This new site will host 250 artisans trained locally with the maison’s exceptional know-how and the expertise of its artisan saddler-leather workers.
In a complex economic and geopolitical context, the group continues its development thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.
Hermès Kelly and Birkin
Hermès was founded in 1837 by Thierry Hermès in Paris as a harness and saddle workshop. Originally catering to European noblemen, Hermès specialized in high-quality equestrian gear, establishing a reputation for its craftsmanship. As the brand grew, it expanded into leather bags, accessories, ready to wear, beauty and fragrance, keeping its artisanal values at the core of its production.
The Hermès Sac à Dépêches bag, created in 1935, became one of the brand’s most iconic items after being popularised by actress Grace Kelly. Following her marriage to Prince Rainier of Monaco, Kelly famously used the bag to shield her pregnancy from photographers, and it soon became known as the “Kelly Bag.” Renamed in her honour in 1977, the Kelly Bag became a symbol of elegance and exclusivity, bolstering Hermès’ image as a luxury leader.
The Birkin, Hermès’ cult bag, was launched in 1984. Per Hermès’ website: “British actress Jane Birkin, sitting next to Jean-Louis Dumas, Executive Chairman of Hermès, was complaining that she couldn’t find a bag suitable for her needs as a young mother… he immediately sketched a supple and spacious rectangular holdall with a burnished flap and saddle stitching. With a dedicated space for her baby’s bottles! Today The Birkin is available in a rare heritage leather with unique character…”
The Birkin, Hermès’ cult bag, was launched in 1984.
A year later, it was gifted to Jane Birkin. Its roomy interior and secure lock made it a stylish hold-all that was ideal for travel and it quickly became a cult. In August 2001- when an episode of Sex and the City showed Samantha saying, “It’s not a bag — it’s a Birkin!”- demand for the luxury bag skyrocketed. Ad, why not? Per Sotheby’s, the Birkin takes artisans around eighteen hours to handcraft and is marked with a code that identifies its year of creation, the workshop it was crafted in, and the artisan who created it. And, it increases in value. Jane Birkin auctioned her original 40-cm Birkin for a reported $162,000 to support earthquake relief efforts in Japan!!
Today, Hermès continues to build on its legacy of craftsmanship, exclusivity, and timeless design. Hermès’ commitment to artisanal production and sustainable practices has ensured its position at the forefront of the luxury industry, while the iconic bags serve as enduring symbols of its dedication to quality, heritage, and innovation.
5 Lesser-known facts about Hermès
- Started as a Horse Harness Workshop
Hermès began in 1837 as a harness and saddle workshop specifically for European nobility. Thierry Hermès, the founder, created high-quality harnesses and bridles, establishing the brand’s commitment to quality and craftsmanship long before it became synonymous with luxury handbags and accessories.
- The Orange Box
Hermès’ iconic orange boxes weren’t originally part of the brand’s identity. During World War II, due to material shortages, Hermès switched from cream-coloured boxes with a gold trim to orange ones as they were available. The orange colour has since become a signature symbol of the brand, representing Hermès’ ability to adapt while maintaining a distinctive aesthetic.
- A Single Craftsman Per Bag
Each Hermès bag is handcrafted by a single artisan from start to finish. This tradition ensures a high level of quality and continuity in each product and is a significant factor in the limited production and exclusivity of items like the Birkin and Kelly bags.
- Early Adoption of the Zipper
Hermès was among the first to introduce the zipper to France, integrating it into leather goods and clothing. In the 1920s, Émile-Maurice Hermès acquired exclusive French rights to the zipper, which was used in their bags and leather jackets, making them one of the pioneers in blending utility with luxury design.
- Secretive and Exclusive Scarf Production
Hermès’ famous silk scarves are meticulously crafted. Each scarf can take up to two years to produce, from the initial design phase to the final product. The brand employs highly skilled artisans to hand-draw and screen-print each scarf, with some designs using over thirty colours. Hermès releases limited-edition scarves each year, making them collectibles and often available only to select customers.
Jasmeen Dugal is Associate Editor at FashionABC, contributing her insights on fashion, technology, and sustainability. She brings with herself more than two decades of editorial experience, working for national newspapers and luxury magazines in India.
Jasmeen Dugal has worked with exchange4media as a senior writer contributing articles on the country’s advertising and marketing movements, and then with Condenast India as Net Editor where she helmed Vogue India’s official website in terms of design, layout and daily content. Besides this, she is also an entrepreneur running her own luxury portal, Explosivefashion, which highlights the latest in luxury fashion and hospitality.
