Hermes to give ₹4 lakh bonus to all employees as revenue surges
Hermes, a Paris-based company, reported strong fourth-quarter sales for 2024. The fashion brand's consolidated revenue touched 15.2 billion Euros in 2024
Luxury brand Hermès has had an exceptional year in terms of revenue as well as its leadership position in the industry, resulting in the company's decision to award each of its employee a bonus of ₹4 lakh (4,500 Euros) at the beginning of 2025.
The French fashion brand's consolidated revenue touched 15.2 billion Euros in 2024, with a 15 per cent increase in constant exchange rates and 13 per cent surge at current exchange rates in comparison to 2023.
Hermès long-term development strategy and its deep-rooted heritage crafts have driven the company up this far. The luxury legend continued to internationally expand its brand by strengthening its distribution network across the globe and the dependence on its loyal customer base.
With its growing business, the fashion brand also indulges in sustainable development and strengthening of workforce. The Hermès group hired 2,300 new employees, including 1,300 in France, in the year 2024, bringing up its workforce tally to a total of 25,000 employees.
According to a Fashion United report, the ₹4 lakh (4,500 Euros) bonus will be paid to all the group employees at the beginning itself as part of the company's social commitment policy.
Excluding Japan, Hermès witnessed a 7 per cent revenue growth over the year, with a significant surge in the fourth quarter, which alone was by 9 per cent. Several stores were opened and re-done in Beijing and Shenzhen, Fashion United reported.
The maximum growth, however, was experienced in Europe with an exclusion of France. A stunning 19 per cent growth, backed by local demand and increased footfall of tourists in the region. The opening of new boutiques in Lille and Naples only added to the fashion brand's growth and expansion.
Hermès' home ground, France, gave it a revenue drive of 13 per cent, reaffirming the solid demand that comes in from both locals and tourists. Though the growth in the second half was slightly lower than that of the first half of 2024, the trends continued to remain positive for the luxury brand.
Notably, Hermès' business lines, including leather goods and footwear, ready-to-wear and accessories, and perfume and beauty sections all showed remarkable growth.
The highest growth percentage of 18 per cent, driven by consumer demand and increased production capability, was seen in the 'leather goods and saddlery' division. While all other business lines, including jewelry and the home universe, posted a dynamic growth of 17 per cent, only the 'watches' segment was in a decline. The ‘watches’ division witnessed a 4 per cent decease in 2024.
In addition, Hermès has also strengthened its actions in terms of inclusion and diversity in its employment, achieving a direct recruitment rate of 7.12 per cent for people with disabilities.
Environmentally, the group has contributed to the reduction of Scope 1, 2 and 3 emissions and has also won awards and recognitions like the Grand Prix des Transparency Awards.
Hermès has decided to take on 2025 with the theme of 'Drawing in all its forms', embodying the brand's very DNA and promise of taking beautiful inspirations for the months to come.