Luxury-handbag maker beats expectations with strong Q4 performance
- Hermes reports surge in fourth-quarter sales
- Revenue of 3.36 billion euros, up 17.5% from prior-year period
- All regions report double-digit revenue growth
- Operating profit for 2023 increases to EUR5.65 billion
- Net profit jumps 28% to EUR4.31 billion
- Hermes confirms ambitious goal for revenue growth
- Proposes dividend of EUR15 a share for 2023
- Mixed bag for luxury industry in earnings season
Hermes is entering 2024 with confidence after reporting a surge in fourth-quarter sales, outperforming the overall luxury sector. The company posted revenue of 3.36 billion euros, up 17.5% from the prior-year period, beating analysts’ expectations. All regions reported double-digit revenue growth, with Asia contributing the most to group revenue. The leather goods and saddlery business saw a 10% increase in revenue. Operating profit for 2023 increased to EUR5.65 billion, while net profit jumped 28% to EUR4.31 billion. Hermes confirms an ambitious goal for revenue growth and proposes a higher dividend for 2023. The luxury industry’s earnings season has been mixed, with some companies showing better performance among high-end clientele. Hermes’s strong results contrast with the sales decline at Gucci owner Kering.
Public Companies: Hermes (N/A), LVMH (N/A), Richemont (N/A), Brunello Cucinelli (N/A), Hugo Boss (N/A), Salvatore Ferragamo (N/A), Burberry (N/A), Kering (N/A)
Private Companies:
Key People: Andrea Figueras (N/A)
Factuality Level: 8
Justification: The article provides specific information about Hermes’ fourth-quarter sales, revenue growth, operating profit, and net profit. It also includes information about the company’s dividend proposal and compares Hermes’ performance to other luxury brands. The information is supported by Visible Alpha consensus and mentions of other companies’ earnings reports.
Noise Level: 7
Justification: The article provides information on Hermes’ fourth-quarter sales and financial performance, including revenue growth and profit increase. It also compares Hermes’ results to other luxury companies. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on financial figures and does not explore the long-term trends or consequences of Hermes’ performance.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information on the performance of luxury companies in the fourth quarter, including Hermes, LVMH, Richemont, Brunello Cucinelli, Hugo Boss, Salvatore Ferragamo, Burberry, and Kering.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article focuses on the financial performance of luxury companies and does not mention any extreme events.
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