Hermès International: €15.2B revenue in 2024 (up 13% reported / 14.7% constant FX), 40.5% recurring operating margin, €12B restated net cash position
Hermès International, the Paris-based ultra-luxury house founded in 1837, reported full-year 2024 consolidated revenue of €15.17 billion — up 13% at current exchange rates and 14.7% at constant exchange rates over 2023. Recurring operating income reached €6.15 billion (40.5% of revenue, versus 42.1% in 2023). Net profit (group share) reached €4.6 billion (30.3% of revenue). The Leather Goods and Saddlery segment — which contains Birkin and Kelly bags — generated €6.46 billion of revenue in 2024, up 16.4% reported. Hermès is structured as a société en commandite par actions (a partnership limited by shares), with the founding Dumas family in management roles and significant family-owned protection against takeover. Axel Dumas is Executive Chairman. The full press release on 2024 results, dated February 14, 2025, was published at finance.hermes.com.
- Story: Hermès International (EPA: RMS) reported 2024 full-year consolidated revenue of €15.17 billion, up 13.0% at current exchange rates and 14.7% at constant exchange rates from €13.43B in 2023. Recurring operating income reached €6.15B (40.5% of revenue, down from 42.1% in 2023). Net profit (group share) reached €4.6 billion (30.3% of revenue). Adjusted free cash flow: €3.77B. Net cash position at year-end: €11.64B.
- Why it matters: Hermès is structured as a société en commandite par actions (SCA) — a partnership limited by shares. Under French corporate law, an SCA legally separates economic owners (limited shareholders) from management partners (general partners), and the general partners cannot be removed by limited shareholders' vote. The Dumas family operates as the general partners in management — which is structurally why Hermès has been able to resist takeover attempts (including LVMH's stake-building in the early 2010s).
- Takeaway: Asia Pacific (excl. Japan) grew 7.4% at constant exchange rates in 2024 despite a downturn in Greater China traffic since end of Q1 2024 — Hermès called this out explicitly.
- Takeaway: Japan grew 22.5% at constant exchange rates in 2024 (driven by local-customer loyalty); the Americas grew 15.5%.
- Takeaway: Leather Goods and Saddlery is the largest segment at €6.46B in 2024 (43% of total revenue) and grew 18.3% at constant exchange rates. Hermès opened its 23rd leather workshop (Riom) in 2024, with three more workshops planned in 2025, 2026, and 2027.
Hermès's 2024 outperformance
Hermès 2024 results
Quick facts
2024 full-year financial performance
On 14 February 2025, Hermès reported 2024 consolidated revenue of €15.17 billion, up 13.0% at current exchange rates and 14.7% at constant exchange rates from €13.43 billion in 2023. Recurring operating income reached €6.15 billion — 40.5% of revenue, down from the 42.1% recurring operating margin in 2023 but still exceptionally high by luxury-industry standards. Net profit (group share) reached €4.6 billion, up 7% from 2023. Adjusted free cash flow reached €3.77 billion, up 18% from 2023's €3.19 billion.
- Geographic growth (constant FX): Japan +22.5%, Americas +15.5%, Europe excl. France +18.9%, France +13.5%, Asia-Pacific excl. Japan +7.4% (per Hermès geographic breakdown at constant exchange rates).
- Greater China softness: Hermès called out 'downturn in traffic in Greater China since the end of the first quarter' as a notable pattern in the Asia-Pacific segment.
- Cash position: Net cash €11.64 billion at year-end 2024, restated €12.04 billion. After distributing €2.6 billion in ordinary and exceptional dividends during 2024.
- Workforce: Headcount of 25,185 at year-end 2024 (up from 22,879 a year earlier). The company added approximately 2,300 jobs in 2024, including 1,300 in France.
What the segment data shows
Leather Goods and Saddlery is Hermès's largest segment at €6.46 billion in 2024 — 43% of total revenue — and grew 18.3% at constant exchange rates. That segment includes Birkin, Kelly, and other leather handbags as well as saddles and equestrian goods (Hermès's original 1837 business). Ready-to-wear and Accessories was the second-largest segment at €4.41 billion (up 15.4% constant FX). Other significant segments: Silk and Textiles €950M, Perfume and Beauty €535M, Watches €577M (the only segment that contracted, down 4.2% constant FX), and a category Hermès calls 'Other Hermès sectors' (which includes Jewellery and Home) at €1.91 billion (up 17.1%). Hermès expanded its leather-goods manufacturing capacity in 2024 with the opening of its 23rd leather workshop in Riom (Puy-de-Dôme), and announced three more workshop openings planned in 2025, 2026, and 2027.
The SCA structure as takeover protection
Hermès is not a société anonyme — it is a société en commandite par actions (SCA), a partnership limited by shares. Under French corporate law, an SCA legally separates economic owners (limited shareholders) from management partners (general partners). The general partners cannot be removed by vote of the limited shareholders. The Dumas family — descendants of founder Thierry Hermès — operate as the general partners in management. That structural setup is the most consequential fact about Hermès's strategic position: it makes a hostile takeover virtually impossible in a way that a publicly-traded société anonyme cannot replicate. This is the structural feature that distinguishes Hermès from LVMH, Kering, and the other luxury conglomerates' acquisition targets.
Frequently asked questions
What was Hermès's 2024 revenue and how does it compare to 2023?
Hermès reported 2024 full-year consolidated revenue of €15.17 billion, up 13.0% at current exchange rates and 14.7% at constant exchange rates from €13.43 billion in 2023. The 2023 revenue itself had grown 20.6% at constant exchange rates from 2022. The full results release is dated 14 February 2025 and is available on finance.hermes.com.
What is Hermès's operating margin?
Recurring operating margin was 40.5% of revenue in 2024 and 42.1% in 2023. Both are exceptionally high in the luxury industry. Hermès cited a negative impact from currency hedging as part of the 2024-vs-2023 margin difference. Operating income of €6.15 billion in 2024 versus €5.65 billion in 2023.
How is Hermès structured legally — why does it matter?
Hermès International is a société en commandite par actions (SCA) — a partnership limited by shares. This is structurally different from a typical société anonyme: the general partners (the Dumas family) manage the company and cannot be removed by limited shareholders' vote. This structure is the primary reason Hermès has been able to resist takeover attempts, including LVMH's stake-building campaign in the early 2010s.
What does Hermès's Leather Goods business do for the company?
Leather Goods and Saddlery is Hermès's largest segment at €6.46 billion in 2024 — about 43% of total revenue. The segment grew 18.3% at constant exchange rates in 2024. It includes Birkin and Kelly handbags, as well as the original saddle and equestrian-goods business that Hermès was founded on in 1837. Hermès's strategy of expanding production capacity (the 23rd leather workshop opened in Riom in 2024, with three more announced through 2027) is the supply-side response to chronic demand outstripping production for the segment.
What's happening in Greater China for Hermès?
Hermès noted in its 2024 results release that Greater China traffic was down 'since the end of the first quarter' of 2024. Despite that, Asia-Pacific excluding Japan still grew 7.4% at constant exchange rates for the full year. Japan separately grew 22.5%, driven by local-customer loyalty. The company opened or reopened multiple Greater China stores in 2024 (Shenyang, Shenzhen Luohu, Beijing SKP).
Sources & references
- Hermès International: 2024 Full-Year Results press release (Hermès, 14 February 2025) — Primary source for all financial figures, segment data, and geographic breakdowns cited in this case study.
- Hermès 2024 Half-Year Results press release (Hermès, 25 July 2024) — H1 2024 results PDF.
- Hermès International 2024 First-Half Results presentation (Hermès, 25 July 2024) — H1 2024 management presentation.
- Hermès 2023 Full-Year Results press release (Hermès, 9 February 2024) — 2023 full-year results PDF.
- Hermès International: 2024 Half-year Results (GlobeNewswire, 25 July 2024) — Wire-service press release for H1 2024.