French luxury giant Hermes achieved record annual sales and net profit in the past year, surpassing expectations. The company reported a 28% increase in net profit to 4.3 billion euros and a 16% surge in sales to 13.4 billion euros.
Executive chairman Axel Dumas attributed the outstanding performance to Hermes’ unique approach and success across all businesses and regions.
To acknowledge the contributions of its 22,000 employees worldwide, Hermes plans to provide a 4,000-euro bonus to each employee early this year. Additionally, the company intends to propose an increase in dividends for shareholders.
The positive financial results propelled Hermes’ stock price by more than four percent, surpassing L’Oreal in market capitalization. Meanwhile, shares in L’Oreal declined after reporting lower-than-expected results.
Despite global economic uncertainties, Hermes remains optimistic about its revenue growth prospects and aims to increase dividends to 15 euros per share, with an additional exceptional dividend of 10 euros per share proposed at the next general meeting in April.
