Hermès sales surged as wealthy shoppers snapped up its pricey handbags over the holiday season, underlining the brand’s resilience compared with luxury peers.
Sales jumped almost 18% in the fourth quarter at constant exchange rates, Hermès International said in a statement Friday. Analysts were expecting a gain of 11%. The region that includes China and the Americas both did much better than estimates.
Hermès shares rose as much as 4.1% to a record in early Paris trading, lifting the company’s market capitalisation to more than EUR300 billion ($421.60 billion), the fourth highest in Europe.
The company has outperformed rivals such as Gucci-owner Kering and LVMH in part because it caters to the wealthiest clients, whose spending tends to be more reliable than less well-off customers during a downturn.
Hermès enjoys strong pricing power and waiting lists for its coveted Birkin and Kelly handbags.
Hermès applied price increases ranging between 6% and 7% globally so far this year, Executive Chairman Axel Dumas told reporters. The company will also pay a bonus of EUR4,500 to its more than 25,000 employees.
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Dumas said it’s too soon to say how trends in China and globally will evolve this year. “I stay very positive for 2025, but nevertheless I realise that comparables will be very high. The bar is high.”
Exceptional dividend
All divisions grew in the fourth quarter, even the struggling watches business. The largest unit, leather goods and saddlery, posted an almost 22% increase in sales, topping estimates. Recurring operating income for the year also beat expectations.
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Speaking to the risk of US tariffs under the new Trump administration, Dumas said Hermès doesn’t adjust its production according to tariffs. “When tariffs go higher, we’ll increase prices as a consequence.”
“We’re very attached to our production where it is,” he said. “Obviously we have a lot of ‘made in France’ but also ‘made in Switzerland’ for the watches or ‘made in Italy’ for shoes.”
The company on Friday also announced plans for an exceptional dividend of EUR10 a share.
