Hermès sales and profit boosted by robust growth across core markets

The Hermès group’s consolidated revenue amounted to 11,602 million euros in 2022, up 29 percent at current exchange rates and 23 percent at constant exchange rates compared to 2021.

In the fourth quarter 2022, the sales momentum recorded at the end of September continued, with sales reaching 2,991 million euros, an increase of 26 percent at current exchanges rates and 23 percent at constant exchange rates.

Recurring operating income increased by 33 percent and amounted to 4,697 million euros, i.e. 40.5 percent of sales. Net profit reached 3,367 million euros, representing net profitability of 29 percent, an increase of 38 percent from 2021.

Commenting on the strong trading performance, Axel Dumas, executive Chairman of Hermès, said in a statement: “In 2022, Hermès had an exceptional year thanks notably to the good performance of its international markets. The year underpins the relevance of our responsible and sustainable model.”

Hermès posts sales increase across geographies

The company said, sales increased considerably both in group stores by 23 percent at constant exchange rates and in wholesale activities by 26 percent, which benefited from the recovery in travel retail.

Asia excluding Japan rose 22 percent, while sales performance in Greater China was sustained. In October, a fourth store opened in the Qiantan district in Shanghai, Mainland China, and Hermès inaugurated a store in Pangyo, in South Korea. Several stores reopened after renovation and extension work, such as the Hyundai Coex store in Seoul in December and the Hong Kong international airport store in November.

Sales in Japan increased 20 percent. In November, the Takashimaya store in Nagoya reopened after renovation and extension in a new location, and the Hermès in the Making exhibition showcased the house’s know-how in Kyoto. The Americas sales rose 32 percent in 2022. After the April opening of a new store in Austin, a new maison was inaugurated at 706 Madison Avenue in New York in September. In Mexico, the store in Guadalajara reopened in October after renovation.

Europe excluding France saw 18 percent growth. The Paseo de Gracia store in Barcelona was inaugurated in November. Sales in France were up 27 percent. The store in Strasbourg, Hermès added, reopened in November.

Hermès business lines confirmed high levels of sales

The leather goods and saddlery business line increased sales by 16 percent, benefitting from very sustained demand and a favourable comparison basis in the 4th quarter. In 2023, Hermès will open two new leather goods workshops: one in Louviers (Normandie) and the other one in la Sormonne (Ardennes). The projects for new workshops sites in Riom (Puy-de-Dôme), L’Isle-d’Espagnac (Charente) and Loupes (Gironde) are ongoing.

The ready-to-wear and accessories division posted 36 percent growth, while the silk and textiles business line achieved 20 percent increase in sales. Perfume and beauty business line grew 15 percent, while the watches business line recorded 46 percent sales rise.

Sales at the other Hermès business lines increased 30 percent, which include jewellery and homeware.

At the general meeting to be held on 20th April 2023, the company said, a dividend proposal of 13 euros per share will be made. The 3.50 euros interim dividend, paid on 22nd February 2023, will be deducted from the dividend approved.

In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.