Unlike its competitors, the luxury group was not affected at the end of the year by sales declines in China.
By Le Figaro with AFP
Posted update
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Record sales, record profit: the luxury group Hermès continued its ascent in 2022 with net profit which soared 38% to 3.4 billion euros, and sales which crossed for the first time, and very largely, the 10 billion euros. Unlike its competitors, Hermès was not affected by sales declines in China at the end of the year. Its turnover reached 11.6 billion euros, which represents an increase of nearly 30% compared to 2021.
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Hermes”approaches the year 2023 with confidence, on the strength of its unique and particularly solid business model“, declared the manager Axel Dumas, who underlines a year 2022 “very strong despite all the uncertainties (…) thanks to desirability in all countries“. A sign of the group’s very high profitability, the operating margin, which shows the percentage of sales converted into wealth, has improved further, to 40.5% (compared to 39.3% in 2021), a particularly high rate. even for the luxury sector.
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While its competitors LVMH and Kering highlighted during the presentation of their annual results a drop in sales in China in the fourth quarter due to the pandemic, Hermès saw its own increase by 30.7% in Asia Pacific (excluding Japan). . “We continued to have strong desirability of the house in China in the fourth quarter“Said Axel Dumas, who is pleased to have invested in local customers.
Two leather goods stores inaugurated in 2023
Sales in the Americas zone jumped 46% to over 2 billion euros and those in the Europe zone increased by 21.5% to 2.6 billion euros. Sales of leather goods and saddlery, the group’s core business with the iconic Birkin bag, rose by 21.3% to nearly 5 billion euros. To meet demand, Hermès will inaugurate two new leather goods stores in 2023.
Sales of Clothing and Accessories jumped 42% and exceeded 3 billion euros. “An exceptional bonus of 4,000 euros will be paid to all employees worldwide at the end of the month“said Axel Dumas. And for shareholders, a dividend of 13 euros per share will be proposed.
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The luxury sector is showing more than vigorous health and constantly breaking records, with 79 billion in sales and 14 billion in profits for the leader LVMH, despite difficulties in China at the end of the year. Kering, whose sales of its flagship brand Gucci were heavily penalized at the end of the year by the pandemic in China, however posted a profit up 14%, to 3.6 billion.
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