Hermès' Sales Jump 13% in Q2 2024
Sales grew in Q2 while other luxury brands struggled.
Hermès, known for their exclusive luxury goods like the Birkin bag, saw sales jump 13% in Q2 2024, surpassing predictions of an 11.5% increase. Hermès’ revenue at constant exchange rates totaled €3.7 billion EUR (approx. $4.02 billion USD) in the three months.
Europe excluding France led total revenue growth with sales up 18% while Japan followed, up 19.5%. Asia excluding Japan was up 5.5 and while most brands experienced loss in China, Hermès kept sales stable.
“The Chinese clientele is a very sophisticated clientele that is currently looking for high-quality products, not necessarily with logos. This change that’s underway is helping us,” said Hermès executive chairman Axel Dumas.
Hermès’ growth is largely due to the exclusivity and loyal customer base the brand has curated. The classic designs in limited quantities keep supply low and demand high. Hermès has found customers willing to pay the ultra-high price point from these tactics.
Hermès grew in almost every category besides watches, down 4.9% and the smaller silk and textiles division, down 5.6%. The brand slipped with aspirational clients as they aren’t shopping at Hermès as much, affecting fashion accessories like silk scarves.
While Hermès delivered positive news, other luxury brands continue to struggle financially. Gucci and Burberry announced disappointing sales figures as the luxury market constantly fluctuates. Gucci experienced a 20% sales drop in the first half of 2024 while Burberry announced a 20% sales drop at constant exchange rates in Q1 2024.
See Hermès’ full financial report here.
