Hermès International (RMS) Q4 2024 earnings summary

Executive summary

• Revenue reached EUR 15.2 billion in 2024, up 15% at constant exchange rates, with all regions and most business lines growing except Watches.

• Current operating income rose 9% to EUR 6.2 billion, and net profit group share increased 7% to EUR 4.6 billion.

• Strong performance in leather goods (+18%), ready-to-wear (+15%), and jewelry/home (+17%), while watches declined (-4%).

• Workforce surpassed 25,000, with 2,300 new hires in 2024 and a EUR 4,500 bonus distributed to all employees.

• Over EUR 600 million invested in production over three years, with new leather workshops in France and continued commitment to sustainability.

Financial highlights

• Gross margin was EUR 10.7 billion (70.3% of revenue), slightly down from 72.3% in 2023 due to currency effects.

• Adjusted free cash flow reached EUR 3.8 billion, up 18%.

• Operational profitability at 40.5% of sales, down from 42.1% in 2023.

• Net cash increased to EUR 12 billion at year-end.

• Ordinary dividend proposed at EUR 16 per share, with an additional exceptional dividend of EUR 10.

Outlook and guidance

• Ambitious medium-term revenue growth target at constant exchange rates, despite global economic and geopolitical uncertainties.

• Entering 2025 with confidence, leveraging integrated artisanal model, balanced distribution, and loyal clientele.

• Continued investments in production capacity, omnichannel retail, and job creation.

• Price increases of 6%-7% planned for 2025, mainly to offset cost inflation and currency impacts.

• No major changes to long-term strategy; focus remains on organic growth and maintaining brand values.