Hermes (RMS-FR) earnings Q4 2024

Haute couture fashion house Hermes on Friday reported a better-than-expected jump in fourth-quarter sales, proving still strong demand for the most exclusive products in an otherwise turbulent luxury market.

The maker of the Birkin handbag posted a 17.6% year-on-year rise in revenues at constant exchange rates to 3.96 billion euros ($4.15 billion) in the three months to Dec. 31, outpacing the 3.69 billion euros forecast by LSEG analysts.

Full-year sales hiked by an annual 14.7% at constant exchange rates to 15.2 billion euros versus an anticipated 14.94 billion euros.

Company shares were up 4% during the day before paring gains to close 0.8% higher.

Hermes has largely evaded a wider luxury sector downturn over recent years, maintaining a sense of allure and exclusivity where other brands have faced pushback amid higher costs and limited innovation.

Executive Chairman Axel Dumas pointed to the loyalty of customers in maintaining sales growth in an otherwise volatile macroeconomic environment.

“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,” Dumas said in a statement accompanying the results.

Looking ahead, the French fashion house forecast continued revenue growth in 2025 without providing a specific figure, and said that it was moving into the year “with confidence.” Dumas added, however, in an earnings call that it was “too early to see an inflection” point in the wider industry, according to Reuters.

Sales growth was broad-based across all regions, with Asia-Pacific excluding Japan recording what the company dubbed a “remarkable” 9% year-on-year increase in the fourth quarter despite wider weakness in the key Chinese luxury market.

Hermes’ leather goods and saddlery segment, which accounts for just under half of group revenues, grew at the fastest pace in the fourth quarter, up 21.7%.