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Q3 2024 Revenue Exceeds Expectations with €11,2 Billion to Date, Highlighting Hermès' Success Across Regions and Product Lines
Sectors & Markets
27 October, 2024
Table of contents
Hermès International presented its Q3 financial performance on 24 October 2024, highlighting another period of growth driven by geographic diversity and sectoral strength. This report provides an in-depth look at Hermès' Q3 financial results, including key performance indicators, revenue growth by region and sector, and an analysis of the company's ongoing environmental, social, and governance (ESG) initiatives, focusing on the sustainability achievements as outlined in its 2023 CSR report.
In Q3 2024, Hermès recorded a consolidated revenue of €3,7 billion, marking a 14% growth at constant exchange rates compared to Q3 2023. By the end of September 2024, cumulative revenue had reached €11,2 billion, representing sustained growth in all sectors, despite some economic challenges across certain regions. This robust performance demonstrates Hermès’ capacity to remain resilient through strategic investments and an unwavering focus on quality.
Below is a comparative table detailing Q3 financial KPIs for 2024 against Q3 2023, with percentage growth:
| Metric | Q3 2024 (€m) | Q3 2023 (€m) | % Change |
|---|---|---|---|
| Total Revenue | 3.704 | 3.365 | +10,1% |
| Leather Goods and Saddlery | 1.573 | 1.396 | +12,7% |
| Ready-to-Wear and Accessories | 1.134 | 1.012 | +12,1% |
| Silk and Textiles | 210 | 204 | +3,0% |
| Other Hermès Sectors | 455 | 403 | +12,7% |
| Perfume and Beauty | 129 | 117 | +10,2% |
| Watches | 126 | 155 | -18,9% |
Hermès' geographical distribution reflects balanced growth, leveraging established markets and emerging opportunities alike. Europe, Japan, and the Americas demonstrated strong performance with significant revenue increases, while Asia-Pacific’s growth, though tempered by a high prior-year comparative, remained positive.
| Region | Q3 2024 (€m) | Q3 2023 (€m) | % Change |
|---|---|---|---|
| France | 365 | 323 | +13,1% |
| Europe (excl. France) | 584 | 492 | +18,8% |
| Total Europe | 949 | 814 | +16,5% |
| Japan | 360 | 304 | +18,5% |
| Asia-Pacific (excl. Japan) | 1.584 | 1.575 | +0,6% |
| Americas | 666 | 600 | +11,0% |
| Other (Middle East) | 145 | 72 | +102,2% |
Hermès’ sectoral strength is led by Leather Goods and Saddlery, with a 12,7% year-over-year growth, bolstered by ongoing demand for both established and newly introduced models. Ready-to-wear and Accessories and Perfume and Beauty also recorded notable growth, contributing to Hermès' broad portfolio of high-performing sectors. Conversely, the Watches segment saw an 18,9% decline, attributed to a high prior-year comparison.
Hermès has been resolute in advancing its sustainability goals, as outlined in its 2023 CSR report. This includes significant progress in carbon emissions, circular economy practices, and resource management across its value chain. Below is a summary of Hermès' key 2023 ESG metrics:
| ESG Metric | 2023 Target | 2023 Progress |
|---|---|---|
| Scope 1 & 2 Emissions Reduction | 50,4% by 2030 | On Track (SBTi validated) |
| Scope 3 Emissions Intensity Reduction | 58,1% by 2030 | On Track (SBTi validated) |
| Leather Supply Chain Certification | 100% by 2024 | 80% Certified (LWG standard) |
| Local Job Creation (France) | Maintain Growth | +2.400 Jobs Added |
Hermès’ environmental policy demonstrates its commitment to renewable energy, supply chain transparency, and eco-friendly real estate standards. By implementing circular economy initiatives, including 80% Leather Working Group certification for leather suppliers and creating hundreds of local jobs through the École Hermès des savoir-faire, Hermès continues to align its operational practices with responsible luxury principles.
Hermès' Q3 financial performance underlines its resilience and adaptability across global markets and diverse product categories. The brand’s forward-looking strategy emphasises continued growth in key markets, with a reinforced commitment to sustainability as a differentiator in the luxury industry. Hermès’ unique blend of artisanal expertise, balanced geographic reach, and dedication to ESG objectives positions it well to sustain future growth while reinforcing its leadership in the global luxury sector.
Looking forward, additional analyses could explore the impact of Hermès’ circular economy initiatives and sustainable sourcing practices on its financial performance. Enhanced metrics in ESG performance reporting could further highlight the company’s progress and reveal opportunities for long-term operational efficiency gains.
Read the full Hermès report Here.
Cover Image: Hermès Website