Hermes logo on a store in Paris
The luxury group Hermès announced on Friday that it would increase its prices this year after reporting a larger than expected increase in its sales in the fourth quarter of 2023.
The group’s sales stood at 3.36 billion euros in the fourth quarter, up 17.5% at constant exchange rates, exceeding analysts’ expectations of 14%, according to a Visible Alpha consensus.
The company indicates in a press release that it was driven by strong growth in all regions, particularly in Japan, despite a high basis of comparison in Asia and America.
It therefore plans to increase its prices globally by 8% to 9% this year, the group’s manager, Axel Dumas, told journalists.
Hermès is known for outperforming its competitors when economic conditions deteriorate, thanks to its classic designs and careful management of production and inventory, which helps maintain the brand’s aura of exclusivity.
Handbags such as the coveted Birkin model, worth more than $10,000, are only accessible to the wealthiest buyers, generally more sheltered from economic vagaries.
Hermès will also pay a bonus of 4,000 euros to each of its 22,000 employees worldwide.
(Reporting by Mimosa Spencer, written and translated by Gaëlle Sheehan; edited by Kate Entringer)