After surpassing €200b mark in market value last week, Hermès has become the world’s second to LVMH in most valuable luxury houses.
2022 brought a successful year for the brand. Now, Hermès International is continuing to soar in its value. As of April, it is sitting at a record high of 218 billion Euros. This is a 31% increase from the end of last year. Now, the design house is second only to LVMH – with a value of 465 billion in the luxury brand market. This also brings the French Maison to 8th place amongst the most valuable corporates in the European stock market; surpassing Swiss drug manufacturer Novartis, according to Bloomberg.
Market Upswing
This year is seeing a huge upswing in market value. And this is the continuation of the performance growth from previous years, since recovering from the pandemic. Hermès’ 2022 year-end report shows that the brand had generated €11.6 billion in revenue and €3.4 billion in net profit, a 29% increase compared to the year before (at current exchange rate).
The numbers come from sales growth in their key business lines including Leather Goods, Ready-to-Wear (& Accessories), and Beauty & Perfume. Hermès had quite a dynamic year in 2022 with the launching of various collections such as Kelly en désordre, Haut à Courroies rock as re-editions of their iconic Kelly and Birkin, limited-edition Rouge Hermes and Hermès Plein Air for beauty, H24 as their new perfume line, alongside with the annual Men and Women’s Ready-to-wear collections, to name a few.
Post-Pandemic Demand
With the removal of travel restrictions and post-pandemic, demand is increasing all over the world. There is no doubt that Hermès is gaining huge numbers in revenue and profit. Axel Dumas, CEO of Hermès, explains that the exceptional results in 2022 are the product of the “good performance of its international markets” and the right direction that the brand’s strategy is going forward.
This success reinforces our approach as an artisanal and highly integrated company, mainly in France: a design house that offers objects conceived to be functional, with an assertive style and uncompromising quality.
According to the reports, Hermès’ plan for 2023 is full of confidence. They have ongoing plans for opening/expanding stores in China, France and the US. They also appear to be launching new collections. Considering the first quarter boom, there is a lot to expect from their report due later in April.
Subscribe to FIB’s Weekly Breaking News Report for your weekly dose of music, fashion and pop culture news!
