Hermès full-year sales boosted by international markets

Hermès has reported a 29% increase in revenue to £10.3 billion (€11.6 billion) for 2022, revealing "remarkable" sales growth in all geographical regions.

Revenue in Asia grew 22% in constant rates to £5.8 billion (€6.6 billion), whilst the Americas shared a  32% increase to £1.8 billion (€2.1 billion). In Europe, revenue was up 22% to £2.3 billion (€2.6 billion).

For the full year, Hermès shared the following sector results:

• Perfume and beauty revenue up 15% to £398 million (€448 million).
• Leather goods and saddlery revenue up 16% to £4.3 billion (€4.9 billion).
• Ready-to-wear and accessories revenue up 36% to £2.7 billion (€3.1 billion).
• Silk and textiles revenue up 20% to £748 million (€842 million).
• Watches revenue up 46% to £461 million (€519 million).

The company noted a 26% increase in wholesale activity, driven by the recovery of travel retail. Sales also grew 23% in group stores, whilst online sales "pursued an upward trend worldwide".

Net profit reached £2.9 billion (€3.3 billion), representing net profitability of 29%. Annual recurring operating income increased 40.5% to £4 billion (€4.6 billion).

Hermès said it has "moved into 2023 with confidence, thanks to its highly integrated artisanal model, balanced distribution network, creativity of collections and the loyalty of clients".

Axel Dumas, Executive Chairman of Hermès, said: “In 2022, Hermès had an exceptional year thanks notably to the good performance of its international markets. This success reinforces our approach as an artisanal and highly integrated company: a design house that offers objects conceived to be functional, with an assertive style and uncompromising quality."