French firm Hermes' sales climb 21% to €13.4 bn in FY23

09 Feb '24

2 min read

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Insights

Hermes reported a 21 per cent YoY sales rise to €13.4 billion in FY23, with operating income up to €5.65 billion.
The company's gross margin increased to 72.3 per cent.
All regions saw about 20 per cent growth, with strong fourth quarter performances in the Americas and Asia.
Sales in leather goods led with €5.547 billion, up 17 per cent.

Hermes, a French high fashion luxury brand, has reported a 21 per cent year-on-year (YoY) increase in sales at constant exchange rates, reaching a total revenue of €13.4 billion. The company's operating income has also seen an increase, reaching €5.65 billion, or 42.1 per cent of revenue, up from €4.697 billion, or 40.5 per cent of revenue in the previous year.

Gross margin stood strong at €9.708 billion, or 72.3 per cent in FY23, compared to €8.213 billion, or 70.8 per cent in FY22, the company said in a media release.

Geographically, all regions contributed to the positive results, showcasing solid performances with growth around 20 per cent. The Americas and Asia, in particular, were highlighted for their sustained activity, contributing to a robust fourth quarter where sales amounted to €3.4 billion, showing an increase of 17.5 per cent at constant exchange rates and 12.5 per cent at current exchange rates.

The revenue was strong across all Hermes’ sectors. The leather goods and saddlery sector led with €5.547 billion in sales, marking a 17 per cent increase at constant rates, while the ready-to-wear and accessories followed closely with a 28 per cent increase to €3.879 billion. Silk and textiles also experienced growth, with sales reaching €932 million, up by 16 per cent.

Hermes was in line with the climate trajectory below 1.5°C (validated by SBTi), as it reported a reduction by 30 per cent of scopes 1 and 2 emissions in absolute value in FY23 vs FY22.

Fibre2Fashion News Desk (DP)

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