French fashion house Hermès' revenue up 15% to $8.14 bn in H1 FY24

France-based luxury fashion brand Hermès has reported consolidated revenue of €7.5 billion (approximately $8.14 billion) in the first half of fiscal 2024 (H1 FY24), marking a 15 per cent increase at constant exchange rates and a 12 per cent rise at current exchange rates compared to the same period in 2023. This growth was driven by double-digit increases in all geographical areas.

The company reported a 7 per cent increase in recurring operating income, totalling €3.1 billion, up from €2.9 billion in the first half of FY23. Despite the adverse effects of currency hedging, the company achieved a recurring operating profitability of 42 per cent, compared to 44 per cent at the end of June 2023. Consolidated net profit attributable to the group amounted to €2.4 billion, an increase from €2.2 billion in the first half of FY23, representing a net profitability of 32 per cent, slightly down from 33 per cent last year, Hermès said in a press release.

Asia excluding Japan posted a 10 per cent growth, with all countries in the region contributing positively. Japan saw a 22 per cent increase. The Americas confirmed sustained growth with a 13 per cent rise. Europe excluding France showed robust growth of 18 per cent, while France recorded a 15 per cent increase in sales.

The leather goods and saddlery sector achieved a a 19 per cent increase. The ready-to-wear and accessories sector reported a 15 per cent growth, while the silk and textiles sector posted a modest growth of 1 per cent.

In the second quarter, Hermès' sales reached €3.7 billion, up 13 per cent at constant exchange rates.

“The solid first-half results, in a more complex economic and geopolitical context, reflect the strength of Hermès’ model. The group is confident in the future and is continuing to invest, to pursue its vertical integration projects and to create new jobs, while remaining true to its values,” said Axel Dumas, executive chairman of Hermès.

Fibre2Fashion News Desk (DP)