Hermes Surpasses €300 Billion Market Value with Stellar Q4 Performance

Hermes has achieved a significant milestone by pushing its market capitalization beyond €300 billion, following a remarkable surge in sales during the final months of 2024. The company’s impressive performance in the fourth quarter, which included a 17.6 percent increase in revenue to reach nearly €4 billion, has helped it outperform the broader luxury industry and even narrow the gap with formidable competitors such as LVMH.

The luxury brand’s resilience was evident globally, with nearly every region experiencing double-digit growth, aside from a slightly more modest rise in the Asia-Pacific region (excluding Japan). This performance comes despite an uncertain economic and geopolitical landscape, underscoring the strength of Hermes’ business model and its appeal among affluent consumers who remain largely unaffected by economic downturns.

Key divisions, including ready-to-wear fashion and leather goods—the latter accounting for roughly half of Hermes' overall sales—recorded strong double-digit growth, with leather goods soaring by 21.5 percent. In contrast, its watches division faced challenges, experiencing a 4.2 percent organic decline due to a tougher market context and more formidable comparisons from previous periods.

Looking ahead into 2025, Hermes plans to sustain its growth trajectory at constant exchange rates and will cautiously navigate the economic uncertainties ahead. Reflecting confidence in its strategy, the company intends to implement a modest price increase between 6 and 7 percent this year, building on its historically conservative approach to pricing that has allowed it greater flexibility in the current market environment.