China Business Daily (Reporter Chen Qing) Recently, Hermes released the fourth quarter and annual performance data of 2023, showing that sales in the fourth quarter of last year rose by 17% year-on-year5% to 33At 600 million euros, it exceeded analysts' expectations and achieved strong growth in all regions, including the Chinese market. For the whole of last year, Hermès had revenue of 134€2.7 billion, up 21 percent at constant exchange rates and 16 percent at current exchange rates; Net profit was 431.1 billion euros, up 28 percent at constant exchange rates.
By region, Asia ex-Japan (led by China) continued to grow strongly, with sales up 19% year-on-year in constant currency terms, with significant sales growth in all countries in the region. Growth in Japan was stable and sustained, with sales up 26 percent year-on-year in constant currency terms. The U.S. market performed well, especially in the second half of 2023, with full-year sales up 21% year-on-year at constant exchange rates.
By business, sales in the leather goods and harness division, where Hermès Platinum Bags are located, surged by 167% to 55At 4.7 billion euros, the ready-to-wear accessories business surged by 282% to 387.9 billion euros, high-end jewelry and watches surged by 232% to 6At 1.1 billion euros, revenues in other segments, including jewellery and home furnishings, increased by 258% to 16At 5.3 billion euros, the silk textile business grew by 156% to 9With 3.2 billion euros, perfume and beauty sales increased by 117% to 49.2 billion euros.
In this regard, Axel Dumas, CEO of Hermès, said: "In 2023, Hermès has once again developed its uniqueness, with outstanding performance in all sectors and in all regions. These solid results reflect the strong appeal of our product range, as well as the dedication and talent of all the brand's employees, to whom I am sincerely grateful. ”
Driven by high performance, Hermès announced that it will award a bonus of 4,000 euros to each of its more than 22,000 employees worldwide.
In addition, in 2023, Hermès opened new leather goods workshops in Louviers and La Sormonne, France, the first industrial buildings in France to receive the E4C2 label, which evaluates environmental performance based on energy consumption and carbon emission indicators. As a result, Hermès' production capacity continues to grow, and in the next four years it plans to promote the construction of four leather goods workshops in France.
It is worth noting that the rapid growth of the performance did not make Hermes give up the price increase. In the earnings report** meeting, Hermes said that in 2024, Hermes will increase the price of its products across the board, with an increase of 8%-9%, compared with about 7% last year. "This is to cover 6% of our production costs. Axel Dumas explained that the price increase partially covers additional production costs and negative currency effects, rather than raising profits through price increases.