Hermès Posts Record €13.4 Billion Revenues for 2023, Reflecting 15.7% Year-on-Year Growth12 February 2024
Luxury conglomerate Hermès unveiled its comprehensive financial report for the fiscal year 2023 on February 9th, revealing a surge in revenues to €13.4 billion, marking a substantial 15.7% increase compared to the previous year.
The group's consolidated revenue for 2023 totalled €13,427 million, showing a 21% surge at constant exchange rates and a 16% rise at current exchange rates compared to 2022. Recurring operating income reached €5,650 million, representing an impressive 42.1% of sales, while net profit attributable to the group soared to €4,311 million, reflecting a significant 28% growth.
In the fourth quarter of 2023, sales reached €3,364 million, displaying an 18% increase at constant exchange rates and a 13% rise at current exchange rates, despite facing a particularly high comparison base in America and Asia. This growth trajectory was sustained, building upon the positive trend witnessed in the third quarter. Axel Dumas, Executive Chairman of Hermès, said: “In 2023, Hermès has once again cultivated its singularity and achieved an outstanding performance in all métiers and across all regions against a high base. These solid results reflect the strong desirability of our collections and the commitment and talent of the house’s women and men. I thank them all warmly.”
As of December 2023, all segments of the business demonstrated robust momentum, with Ready-to-wear and Accessories, Watches, and Other Hermès Sectors witnessing significant growth. The Leather Goods and Saddlery segment experienced a particularly strong surge of 17%, driven by sustained demand. Notable successes included the Maximors bag, alongside the unveiling of Della Cavalleria Élan and Arçon bags, which showcased exceptional craftsmanship in line with the brand's Arts & Crafts ethos.
During 2023, Hermès inaugurated leather goods workshops in Louviers and La Sormonne, the first two industrial buildings in France to receive the E4C2 label, recognizing their environmental performance based on energy consumption and carbon emissions. Plans for further expansion include four additional leather goods workshop projects over the next four years, reinforcing production capacities and leveraging the expertise of nine centers spread across France.
Entering 2024, Hermès remains confident in its highly integrated artisanal model, balanced distribution network, creative collections, and loyal client base, positioning the group for continued success.