Hermes shares soar to all-time high on ‘rock solid’ sales growth By Investing.com



© Reuters. Hermes shares soar to all-time high on ‘rock solid’ sales growth

Hermes International’s (HESAY (OTC:)) shares jumped 4.6% in Paris on Friday, hitting an all-time high after the luxury fashion brand reported strong sales for FQ4 2023 and announced plans for a price hike.

Specifically, the company recorded a revenue of €3.36 billion ($3.62 billion) for the last quarter of the year, marking a 17.5% increase at constant exchange rates from the year before. This performance exceeded the expectations of analysts, who had projected a revenue of €3.26 billion, according to Visible Alpha consensus.

Hermes experienced robust double-digit revenue growth across all regions during the quarter, with Asia being the top contributor at €1.72 billion.

The leather goods and saddlery segment, which encompasses bags and small leather goods and is a major revenue driver for the company, saw its revenue rise by 10% to €1.37 billion.

Looking ahead, Hermes plans to propose a dividend of €15 per share for 2023, an increase from the €13 per share paid the year prior, alongside a special dividend of €10 per share.

In addition, the company intends to adjust its global prices upwards by 8% to 9% this year, as stated by executive chairman Axel Dumas, who expressed strong confidence in the Chinese market.

“Rock solid,” Citi analysts said about Hermes in the wake of its report.

“With continued brand heat in both handbags and non-leather categories (in particular RTW, watches and jewellery), supply/demand imbalances and 8-9% pricing implemented in January (slightly above last year _7%), Hermes is well-positioned in 2024, we think,” they wrote in the note.



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