Growth goes on for Hermès
Luxury group Hermès has reported revenues of just under €6.7 billion for the first half of 2023, up by 22.3% compared to the same period last year.
Its leathergoods and saddlery division contributed €2.8 billion towards the total, which represents growth of 17.9% year on year.
Revenues from ready-to-wear and accessories reached €1.9 billion, up by 31.8%.
It’s a year since financial analysts questioned Hermès’s ongoing commitment to leather. It has recently begun training new-generation leathergoods artisans at its Guyenne site in south-west France (pictured). In recent months, leathergoods production has begun at new factories in Louviers and la Sormonne.
On reporting its results for the first half of last year, analysts pointed to the comparative growth figures and suggested the company should pay less attention to leather and more to higher-growth parts of the business. The reason they gave was that increasing output of ready-to-wear products would be easier and quicker for Hermès.
Chief executive, Axel Dumas, reacted angrily and said he would rather keep production at lower levels than compromise on the quality of the materials or on the levels of skilled craftsmanship that go into the brand’s products.
Now, on releasing the results for the first half of this year, Mr Dumas said: “The 2023 first-half results reflect the strength of the pillars of the artisanal model of the company: quality of materials, exceptional know-how and abundant creativity. To support this growth, we continue to invest in our production capacities, in the expansion of our network, while accelerating job creation and training in all of the group’s métiers.”
At the end of June 2023, Hermès had a workforce of 20,607 people, up by 11.8% compared to the same date last year.
