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While the broader luxury industry saw single-digit expansion, Hermès maintained double-digit growth across categories. The global luxury market growth was expected to hover around 4–5% in 2024, impacted by China’s slow recovery and reduced aspirational spending. There is an increase in polarisation between ultra-luxury and accessible segments, with top-tier houses like Hermès capturing a disproportionate share of growth. In contrast to peers, Hermès benefitted from a resilient ultra-high-net-worth customer base and a value-driven approach to exclusivity.
In a year marked by inflation, geopolitical uncertainty, and uneven consumer sentiment, Hermès once again defied industry gravity to post outstanding financial results. The French luxury house reported revenues of €15,2 billion for FY2024 (1 January to 31 December 2024), reflecting a +13% increase at current exchange rates and +15% at constant exchange rates. Operating income exceeded €6,1 billion, with profitability holding firm at 40,5% despite foreign exchange pressures. Net profit reached €4,6 billion, representing 30,3% of sales.
Hermès defines its financial year (FY2024) as the calendar year, running from 1 January 2024 to 31 December 2024. This is confirmed in their official 2024 results press release, published on 14 February 2025
Financial Performance
Hermès delivered consistent double-digit growth over the four-year period, achieving a compound annual growth rate (CAGR) of over 19% in revenue between 2021 and 2024. This performance reflects the brand's ability to maintain desirability and pricing power even in a volatile macroeconomic environment. Operating income grew at a similar pace, supported by disciplined cost structure, vertical integration, and exceptional gross margins.
In 2024, although operating margin slightly decreased from 42,1% to 40,5% due to adverse currency effects, Hermès still maintained one of the highest margins in the luxury industry. Net profit also rose steadily, indicating strong financial health and efficient capital deployment.
Compared to its key competitors, Hermès stood apart in terms of consistency and profitability. LVMH's Fashion & Leather Goods segment showed lower growth amid normalisation in post-COVID demand, while Kering Group faced revenue pressures from Gucci and margin decline across brands. Richemont, although strong in jewellery, experienced muted growth in Asia and higher operating expenses. Hermès' strategy of maintaining scarcity, investing in craftsmanship, and expanding its exclusive retail footprint continues to yield superior financial results relative to its peers. of over 19% in revenue between 2021 and 2024. Despite margin pressures from currency effects in 2024, operating income grew steadily across the period, underpinned by disciplined cost control and elevated product pricing.
Relative to its peers, Hermès outperformed the luxury market. LVMH’s Fashion & Leather Goods segment posted single-digit revenue growth in H2 2024, while Kering and Richemont faced margin compression and stagnation in China. Hermès maintained balanced regional exposure and generated industry-leading profitability.
Strategic Developments and Brand Work
In 2024, Hermès continued to assert its creative identity through a series of impactful launches and cultural initiatives. The men's Spring-Summer 2025 collection debuted in June at Palais d'Iéna, showcasing technical refinement paired with a relaxed, elegant silhouette. This was followed by the women's Spring-Summer 2025 collection, presented in September at the Garde Républicaine, which offered a poetic interplay between fluid tailoring and equestrian references, reinforcing the brand's heritage and aesthetic coherence.
The Leather Goods and Saddlery segment was enriched with two standout introductions: the Hermès Della Cavalleria Élan and the Arçon bag, both emblematic of the house's craftsmanship. The travel line was also strengthened with launches like the R.M.S. Cargo suitcase and coordinated weekend bags. In Beauty, Hermès unveiled the new perfume Barénia in September, inspired by the maison's iconic leather, and expanded its cosmetics line with the Trait Hermès eye and lip liners.
Leadership remained stable through the year, with no major changes to the creative direction. Nadège Vanhee-Cybulski (Womenswear) and Véronique Nichanian (Menswear) continued to guide the artistic vision, contributing to the coherence and continuity of Hermès' fashion narratives.
The brand's cultural presence was underscored by high-profile campaigns and exhibitions. In October, the petit h initiative was staged at the Madison Avenue store in New York, celebrating sustainability through artistic repurposing of materials. Meanwhile, the eighth Haute Bijouterie collection, Les formes de la couleur, was presented across three major cities—Paris, Beijing, and Taipei—throughout the second half of the year. Consistent with its philosophy of understated exclusivity, Hermès did not appoint any new global brand ambassadors in 2024.
Retail development in 2024 followed a strategy of qualitative growth and selective expansion. Key store inaugurations and renovations included Shenyang MixC Mall, Shenzhen Luohu, and Beijing SKP in Mainland China; Tokyo Ginza and Azabudai Hills in Japan; Atlanta and Princeton in the United States; and Lille, Nantes, and Naples in Europe. These openings reaffirmed Hermès' commitment to enhancing the client experience through architectural excellence and local cultural integration.
Outlook for 2025 and Beyond
Hermès enters 2025 with renewed creative energy under the annual theme Drawn to Craft, a concept that underscores the brand's enduring devotion to craftsmanship, design, and innovation. This thematic focus will guide not only seasonal collections but also corporate strategy and communications. The maison is set to deepen its investment in artisanal excellence, sustainable sourcing, and vertical integration.
A key operational milestone for 2025 is the opening of a new leather goods workshop in L’Isle-d’Espagnac (Charente), which will expand production capacity while reinforcing Hermès' commitment to local employment and training. This site adds to a growing network of regional centres of expertise across France, where the company continues to scale its bespoke training programmes via the École Hermès des savoir-faire. These institutions now operate in all 10 French training schools and play a central role in sustaining the brand’s savoir-faire across generations.
Hermès is also advancing its ambitious ESG roadmap. By the end of 2025, it aims to complete certification of all 44 supply chains. Already, over 80 % of the leather goods division's suppliers are certified by the Leather Working Group (LWG). The maison has made substantial strides in emissions reduction as well: since 2018, Scope 1 and 2 emissions have been cut by 63.7 % in absolute terms, and Scope 3 emissions intensity by over 50 %. These achievements support Hermès' long-term climate objectives validated by the Science Based Targets initiative (SBTi).
As of Q1 2025, Hermès has distributed a €4.500 bonus to all employees worldwide, reflecting the group's ongoing commitment to equitable value sharing. It has also begun construction on upcoming production sites and continues to refine its selective retail strategy in high-potential markets. As the year unfolds, the house is expected to roll out additional activations tied to the Drawn to Craft theme, further connecting product design, storytelling, and heritage.
In a sector increasingly focused on resilience, traceability, and transparency, Hermès' 2025 strategy positions it to lead not only in creative distinction but also in ethical innovation.
Conclusion
Hermès’ 2024 performance reaffirms its position at the pinnacle of the global luxury industry—driven by artistic integrity, operational excellence, and long-term strategic discipline. The maison achieved exceptional financial outcomes, crossing €15 billion in annual revenue for the first time, with consistent double-digit growth in both revenue and operating income. Its ability to maintain an operating margin above 40%—a rare feat in the sector—sets it apart from competitors navigating currency pressures and inconsistent consumer demand.
Compared to rivals such as LVMH, Kering, and Richemont, Hermès demonstrated superior resilience and consistency, leveraging a tightly controlled distribution model, vertical integration, and a loyal ultra-high-net-worth customer base. Strategic investments in exclusive retail, artisanal production, and creative continuity yielded strong returns across all categories, especially Leather Goods, Ready-to-Wear, and Beauty.
Beyond financial results, Hermès continued to expand its cultural footprint in 2024 through thoughtfully curated collection launches, architectural retail experiences, and initiatives such as petit h and Les formes de la couleur. It preserved artistic direction under long-serving creative leads while avoiding the volatility of endorsement-led branding.
Looking ahead, Hermès’ 2025 strategy—framed by the theme Drawn to Craft—focuses on reinforcing its artisanal roots, expanding training and production infrastructure in France, and advancing ESG priorities. With ambitious targets for supply chain certification and emissions reduction, Hermès continues to embed sustainability into its growth agenda.
In essence, 2024 was a year where Hermès not only outperformed financially but also reaffirmed its commitment to timeless values—craftsmanship, creativity, and responsibility. As the brand transitions into 2025, it is not just shaping the future of luxury but defining what responsible growth and cultural leadership look like in a rapidly changing world.
Read the full Hermès brand report Here.