French luxury brand Hermès has announced a generous €4,000 bonus for all its 22,400 employees.
The company was resilient during a global luxury market downturn, reporting a 28 percent profit increase last year.
This bonus matches the amount given to employees the previous year.
It announced revenues of €13.4 billion, marking a 21 percent increase from the previous year, driven by strong sales in accessories and its H08 watch line.
This financial success led to profits soaring to €4.3 billion.
However, its competitor, Kering, experienced a decline in sales.
Hermès expects continued growth into 2024, buoyed by the enduring popularity of its iconic Birkin and Kelly bags.
This performance comes amid concerns of a luxury spending slowdown in the latter half of 2023, challenging the post-pandemic spending surge.
Axel Dumas, executive chairman of Hermès, said: “In 2023, Hermès has once again cultivated its singularity and achieved an outstanding performance.
“These solid results reflect the strong desirability of our collections and the commitment and talent of the house’s women and men. I thank them all warmly.”
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Hermès’ UK operations, as of the end of 2022, included 252 employees and 10 stores, predominantly located in London, with a flagship on Bond Street.
This announcement saw Hermès shares climb 4.8 percent in early trading in Paris, reaching €2,175, marking a 27.3 percent increase over the past year.
Yanmei Tang, an analyst at Third Bridge, said: “Hermès reports strong Q4 2023 earnings, demonstrating resilience in the luxury sector amid an economic downturn.”
