Hermès International: Third Quarter 2024 Revenue
HERMÈS
Quarterly information report as at the end of
September 2024
Continued solid sales growth at the end
of September
(+14% at constant exchange rates and +11% at current
exchange rates)
Paris, 24 October 2024
The group’s consolidated revenue amounted to
€11.2 billion at the end of September 2024, up 14% at constant
exchange rates and 11% at current exchange rates compared to the
same period in 2023.
In the third quarter, sales continued to rise
and reached €3.7 billion, up 11% at constant exchange rates and 10%
at current exchange rates. All regions are growing, despite a
particularly high comparison basis in Europe and Asia-Pacific.
Axel Dumas, Executive Chairman of Hermès, said:
“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 recruitments and long-term
investments.”
Sales by geographical area at the end of
September
(at constant exchange rates, unless otherwise
indicated)
At the end of September 2024, all the
geographical areas posted solid growth, and the exclusive
distribution network continued its development.
Asia excluding Japan (+7%) posted growth,
supported by solid sales in Korea, Singapore, Australia and
Thailand. The region is growing in the third quarter despite the
downturn in traffic in Greater China observed since the end of the
Chinese New Year, and a high base in the third quarter last year.
The Shenzhen store in China reopened in October after renovation
and expansion, following the Lee Gardens store reopening in Hong
Kong in June. In August, the Collins Street store in Melbourne
reopened after renovation.
Japan (+23%), after an excellent third quarter,
confirmed its strong growth thanks to the loyalty of its local
clients. The new Ginza Mitsukoshi store was inaugurated in Tokyo in
June, after the Azadubai Hills store in February.
The Americas (+13%) continued their solid
momentum in the third quarter, with growth close to the previous
two quarters. The new Princeton store in New Jersey opened in April
and online sales continued their development with their extension
to Mexico in September.
Europe excluding France (+18%) achieved a
remarkable performance, notably in the third quarter thanks to
solid local demand and continued dynamics of tourist flows in all
the countries of the region.
France (+14%) after a sustained third quarter
confirmed its momentum despite a slight slowdown in traffic in the
Parisian stores due to the Olympic games. The Nantes store reopened
in June after being renovated.
Sales by sector at the end of
September
(at constant exchange rates, unless otherwise
indicated)
At the end of September 2024, all the métiers
with the exception of the Watches métier, posted solid growth.
The Leather Goods and Saddlery métier (+17%)
continued its solid growth. Demand remained sustained for both
iconic models, which are constantly being reinvented, and for new
models, such as the Constance Élan and Bolide à
dos bags with a marked saddler spirit. Production capacity
continued to increase, with the opening of the group’s twenty-third
leather goods workshop in Riom, in the Puy-de-Dôme, in September.
This new facility reinforces the company’s nine centres of
expertise located across the national territory.
The Ready-to-wear and Accessories sector (+15%)
confirmed its sustained momentum. The men’s spring-summer 2025
fashion show, held at the Palais d’Iéna in June, was very well
received. The women’s spring-summer 2025 collection, was presented
at the end of September at the Garde Républicaine. It is inspired
by the workshop as a place of creation and offers a combination of
soft leather and transparency.
The Silk and Textiles sector (+2%) grew in the
third quarter, thanks to creations combining exceptional materials
and savoir-faire.
Perfume and Beauty (+7%) achieved a steady
growth in the third quarter. In September, the house successfully
launched the new women’s perfume, Barénia, imagined by
Christine Nagel. This new fragrance bears the name of an heritage
leather and is displayed in an object bottle inspired by the
Collier de chien bracelet. Beauty enriched its offering
with the second part of Le Regard, the Trait
Hermès, composed of pencils for the eyes and the lips.
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 Hermès
H08 collection continues to be well received.
The Other Hermès sectors (+17%), which include
Jewellery and the Home universe, pursued their strong growth,
illustrating the singularity and creativity of the house. The
eighth Haute Bijouterie collection, Les formes de la
couleur, was presented in September in Beijing after Paris in
June.
A sustainable and responsible
model
True to its commitment to local anchoring and
job creation, the house inaugurated the Riom leather goods workshop
in September. This new site will ultimately host 250 artisans
trained locally with the house’s exceptional know-how, following
the installation in Riom since 2022, of the École Hermès des
savoir-faire to pass on the expertise of the house’s artisan
saddler-leather workers. The establishment of the leather goods
workshop in the former Manufacture des Tabacs, a former industrial
site registered as a historic site and fully rehabilitated,
reflects the house’s approach of enhancing industrial heritage and
minimizing the artificialisation of soils.
The sustainable and responsible dimension of the
house’s craftsmanship model was rewarded in August by S&P, with
an increase in its rating up 11 points to 65/100. The MSCI rating
agency also confirmed the house’s AA rating in a context of
increased regulatory constraints and transparency. These results
demonstrate the commitments and values of the house.
Other highlights
At the end of September 2024, currency
fluctuations represented a negative impact of €242 million on
revenue.
During the first nine months, Hermès
International redeemed 21,316 shares for €40 million, excluding
transactions completed within the framework of the liquidity
contract.
Outlook
In a more complex economic and geopolitical
context, the group continues its development with confidence,
thanks to the highly integrated artisanal model, the balanced
distribution network, the creativity of collections and the loyalty
of clients.
In the medium-term, despite the economic,
geopolitical and monetary uncertainties around the world, the group
confirms an ambitious goal for revenue growth at constant exchange
rates.
Thanks to its unique business model, Hermès is
pursing its long-term development strategy based on creativity,
maintaining control over know-how and singular communication.
In the Spirit of the Faubourg is the
theme of the year. This place, the fruit of Emile Hermès’ dream, is
the beating heart of the house. It accompanies Hermès everywhere
and inspires the effervescence and joyful spirit so dear to the
house.
The press release on Revenue at the end of
September 2024 is available
on the group’s website: https://finance.hermes.com.
Upcoming events:
- 14 February 2025: 2024 full-year
results publication
- 17 April 2025: Q1 2025 revenue
publication
- 30 April 2025: General Meeting of
shareholders
Revenue by geographical area
(a)
|
|
At the end of September |
Evolution /2023 |
In
€m |
|
2024 |
2023 |
Published |
At constant exchange rates |
France |
|
1,045 |
916 |
14.2% |
14.2% |
Europe (excl.
France) |
|
1,554 |
1,327 |
17.1% |
18.4% |
Total Europe |
|
2,600 |
2,243 |
15.9% |
16.7% |
Japan |
|
1,053 |
939 |
12.1% |
22.6% |
Asia-Pacific
(excl. Japan) |
|
5,105 |
4,872 |
4.8% |
7.0% |
Total Asia |
|
6,158 |
5,811 |
6.0% |
9.5% |
Americas |
|
1,995 |
1,785 |
11.7% |
12.8% |
Other (Middle
East) |
|
456 |
223 |
104.4% |
104.8% |
TOTAL |
|
11,208 |
10,063 |
11.4% |
13.8% |
|
|
3rd
quarter |
Evolution /2023 |
In
€m |
|
2024 |
2023 |
Published |
At constant exchange rates |
France |
|
365 |
323 |
13.1% |
13.1% |
Europe (excl.
France) |
|
584 |
492 |
18.8% |
20.3% |
Total Europe |
|
949 |
814 |
16.5% |
17.4% |
Japan |
|
360 |
304 |
18.5% |
22.8% |
Asia-Pacific
(excl. Japan) |
|
1,584 |
1,575 |
0.6% |
1.0% |
Total Asia |
|
1,944 |
1,879 |
3.5% |
4.6% |
Americas |
|
666 |
600 |
11.0% |
13.4% |
Other (Middle
East) |
|
145 |
72 |
102.2% |
104.4% |
TOTAL |
|
3,704 |
3,365 |
10.1% |
11.3% |
(a) Sales by destination.
Revenue by sector
|
|
At the end of September |
Evolution /2023 |
In
€m |
|
2024 |
2023 |
Published |
At constant exchange rates |
Leather Goods
and Saddlery (1) |
|
4,789 |
4,176 |
14.7% |
17.3% |
Ready-to-wear
and Accessories (2) |
|
3,296 |
2,934 |
12.3% |
14.8% |
Silk and
Textiles |
|
646 |
648 |
(0.2%) |
2.2% |
Other Hermès
sectors (3) |
|
1,421 |
1,239 |
14.7% |
17.0% |
Perfume and
Beauty |
|
388 |
367 |
5.9% |
6.8% |
Watches |
|
434 |
473 |
(8.2%) |
(6.2%) |
Other products
(4) |
|
233 |
226 |
3.3% |
4.6% |
TOTAL |
|
11,208 |
10,063 |
11.4% |
13.8% |
|
|
3rd
quarter |
Evolution /2023 |
In
€m |
|
2024 |
2023 |
Published |
At constant exchange rates |
Leather Goods
and Saddlery (1) |
|
1,573 |
1,396 |
12.7% |
14.0% |
Ready-to-wear
and Accessories (2) |
|
1,134 |
1,012 |
12.1% |
13.5% |
Silk and
Textiles |
|
210 |
204 |
3.0% |
4.0% |
Other Hermès
sectors (3) |
|
455 |
403 |
12.7% |
13.6% |
Perfume and
Beauty |
|
129 |
117 |
10.2% |
10.6% |
Watches |
|
126 |
155 |
(18.9%) |
(18.2%) |
Other products
(4) |
|
76 |
76 |
(0.0%) |
0.6% |
TOTAL |
|
3,704 |
3,365 |
10.1% |
11.3% |
(1) The “Leather Goods and Saddlery”
business line includes women’s and men’s bags, travel items, small
leather goods and accessories, saddles, bridles and all equestrian
objects and clothing.
(2) The “Ready-to-wear and Accessories” business line
includes Hermès Ready-to-wear for men and women, belts, costume
jewellery, gloves, hats and shoes.
(3) The “Other Hermès business lines” include Jewellery
and Hermès home products (Art of Living and Hermès Tableware).
(4) The “Other products” include the production
activities carried out on behalf of non-group brands (textile
printing, tanning…), as well as John Lobb, Saint-Louis and
Puiforcat.
REMINDER –
FIRST HALF 2024 KEY FIGURES
In millions of euros |
H1 2024 |
2023 |
H1 2023 |
|
|
|
|
Revenue |
7,504 |
13,427 |
6,698 |
Growth at current exchange rates vs. n-1 |
12.0% |
15.7% |
22.3% |
Growth at constant exchange rates vs. n-1
(1) |
15.1% |
20.6% |
25.2% |
|
|
|
|
Recurring operating income (2) |
3,148 |
5,650 |
2,947 |
As a % of revenue |
42.0% |
42.1% |
44.0% |
|
|
|
|
Operating income |
3,148 |
5,650 |
2,947 |
As a % of revenue |
42.0% |
42.1% |
44.0% |
|
|
|
|
Net profit – Group share |
2,368 |
4,311 |
2,226 |
As a % of revenue |
31.6% |
32.1% |
33.2% |
|
|
|
|
Operating cash flows |
2,829 |
5,123 |
2,615 |
|
|
|
|
Operating investments |
319 |
859 |
249 |
|
|
|
|
Adjusted free cash flows (3) |
1,776 |
3,192 |
1,720 |
|
|
|
|
Equity – Group share |
15,052 |
15,201 |
13,249 |
|
|
|
|
Net cash position (4) |
9,477 |
10,625 |
9,326 |
|
|
|
|
Restated net cash position (5) |
10,033 |
11,164 |
9,848 |
|
|
|
|
Workforce (number of employees)
(6) |
23,242 |
22,037 |
20,607 |
(1) Growth at
constant exchange rates is calculated by applying, for each
currency, the average exchange rates of the previous period to the
revenue for the period.
(2) Recurring
operating income is one of the main performance indicators
monitored by Group Management. It corresponds to operating income
excluding non‑recurring items having a significant impact that may
affect understanding of the Group’s economic performance.
(3) Adjusted
free cash flows are the sum of cash flows related to operating
activities, less operating investments and the repayment of lease
liabilities recognised in accordance with IFRS 16
(aggregates in the consolidated statement of cash flows).
(4) Net
cash position includes cash and cash equivalents presented under
balance sheet assets, less bank overdrafts which appear under
short‑term borrowings and financial liabilities on the liabilities
side. Net cash position does not include lease liabilities
recognised in accordance with IFRS 16.
(5) The
restated net cash position corresponds to net cash plus cash
investments that do not meet the IFRS criteria for cash equivalents
due in particular to their original maturity of
more than three months, less borrowings and financial
liabilities.
(6) The
headcount relates to employees on permanent contracts and those on
fixed-term contracts lasting more than 9 months.
- hermes_20241024_q3revenue_en
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