France's Hermes posts 29% growth in consolidated revenue in FY22

The leather goods and saddlery business line saw a particularly impressive performance, with a 16 per cent increase in sales, benefiting from sustained demand and favourable comparisons in the fourth quarter. The ready-to-wear and accessories division also saw strong growth, with a 36 per cent increase in sales, thanks to the success of the collections.

The silk and textiles business line achieved a 20 per cent increase in sales, supported by the growth in production capacities and the success of the collections. Meanwhile, the other Hermes business lines, including homeware, continued their upward trend, the company said in a press release.

The group's recurring operating income increased by 33 per cent, reaching €4,697 million, while the annual recurring operating profitability reached its highest level ever at 40.5 per cent, up from 39.3 per cent in 2021. Consolidated net profit (group share) amounted to €3,367 million, an increase of 38 per cent from the previous year.

In the fourth quarter FY22, the sales momentum recorded at the end of September continued, with sales reaching €2,991 million, an increase of 26 per cent at current exchanges rates and 23 per cent at constant exchange rates.

“In 2022, Hermès had an exceptional year thanks notably to the good performance of its international markets. This success reinforces our approach as an artisanal and highly integrated company, mainly in France: a design house that offers objects conceived to be functional, with an assertive style and uncompromising quality. The year underpins the relevance of our responsible and sustainable model,” said Axel Dumas, executive chairman of Hermes.

Fibre2Fashion News Desk (DP)