Hermès Reports 17% Sales Increase in Q1 2024, Defying Luxury Slowdown

Hermès on Thursday shared its financial report for Q1 2024, revealing that it surpassed analyst expectations with a 17% increase in sales to reach €3.8 billion EUR in the three-month period.

Defying the global slowdown of luxury sales, the Birkin brand earned double-digit growth across all regions. In the Asia Pacific market, excluding Japan, the company saw a 14% increase, where its “value strategy” was able to offset “softer traffic” in Greater China following the Chinese New Year. Eric du Haelgouet, the company’s chief financial officer, told reporters that strong demand from wealthy consumers for high-priced leather, ready-to-wear and jewelry goods was able to make up for lost store visits in the region, according to Business of Fashion.

In Japan, Hermès saw sales climb by 25%, which the brand accredited to the loyalty of its local customers. In the Americas, the brand posted a 12% increase in sales, thanks to momentum surrounding key brand experiences, like the traveling Hermès in the Marking exhibition. In Europe (excluding France), the brand reported a 15% increase in sales; and in France, those figures were up 14%.

Hermès’ leather goods and saddlery métier saw sales climb by 20%, while ready-to-wear and accessories jumped up by 16%. Silk and textiles increased by 8%; perfume and beauty grew by 4%, and watches saw a 4% rise in sales.

Looking ahead, Hermès has “an ambitious goal for revenue growth” that will be bolstered by its “highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.”

See Hermès’ full financial report for Q1 2024 here.