Hermes Positive on 2024 After Sales Growth — Update
By Andrea Figueras
Hermes said it is moving into 2024 with confidence after the Birkin bag maker reported a surge in fourth-quarter sales despite a slowdown in the overall luxury sector.
The French luxury-handbag maker on Friday posted revenue of 3.36 billion euros ($3.62 billion) for the last three months, up 17.5% at constant exchange rates from the prior-year period, beating analysts' expectations of EUR3.26 billion, according to Visible Alpha consensus.
At constant exchange rates, all regions reported double-digit revenue growth for the final quarter, while Asia was the largest contributor to group revenue with EUR1.72 billion.
Operating profit for 2023 increased to EUR5.65 billion from EUR4.7 billion in the previous year, while net profit jumped 28% to EUR4.31 billion.
"In the medium-term, despite the economic, geopolitical, and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates," it said.
For 2023, Hermes will propose a dividend of EUR15 a share, up from EUR13 a share paid out in the previous year, and an exceptional dividend of EUR10.00 a share.
Hermes's results come in an earnings season that has so far left a mixed bag for the luxury industry, with companies exposed to high-end clientele showing a better performance.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
February 09, 2024 03:11 ET (08:11 GMT)
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