France-based luxury fashion brand Hermès has reported consolidated revenue of €7.5 billion (approximately $8.14 billion) for the first half of fiscal year 2024 (H1 FY24), up 15% at constant exchange rates and up 12% at current exchange rates compared to the same period in 2023. This growth was driven by double-digit increases across all geographic areas.
Hermès reported €7.5 billion (~$8.14 billion) in revenue in the first half of FY24, up 15 percent at constant exchange rates. Recurring operating income increased 7 percent to €3.1 billion. Net profit increased to €2.4 billion. Asia grew 10 percent, Japan 22 percent, Americas 13 percent and Europe 18 percent. Leather goods increased 19 percent and ready-to-wear increased 15 percent.
The company recorded a 7% increase in recurring operating profit to €3.1 billion, compared to €2.9 billion in the first half of 2023. Despite the adverse effects of currency hedging, the company achieved a recurring operating profitability of 42%, compared to 44% at the end of June 2023. Consolidated net profit attributable to the group amounted to €2.4 billion, compared to €2.2 billion in the first half of 2023, representing a net profitability of 32%, slightly lower than the 33% last year, Hermès said in a press release.
Asia excluding Japan recorded 10% growth, with all countries in the region contributing positively. Japan recorded a 22% increase. The Americas confirmed sustained growth with a 13% increase. Europe excluding France showed solid growth of 18%, while France recorded a 15% increase in sales.
The leather goods and saddlery sector recorded a 19 percent increase. The ready-to-wear and accessories sector recorded a 15 percent growth, while the silk and textiles sector recorded a modest 1 percent growth.
In the second quarter, Hermès sales reached €3.7 billion, up 13 percent at constant exchange rates.
“The strong results of the first half of the year, in a more complex economic and geopolitical context, reflect the solidity of the Hermès model. The group is confident about the future and continues to invest, pursue its vertical integration projects and create new jobs, without losing its loyalty to its values,” he said. Axel Dumas, CEO of Hermès.
Fibre2Fashion (DP) Press Desk
