Hermès rewards shareholders with substantial special dividend after a brilliant fiscal year

Despite the subdued luxury boom, Hermès continues to demonstrate extraordinary resilience in the market and pleasantly surprises with a special dividend for its shareholders. The French luxury goods manufacturer announced an additional distribution of 10 euros per share, a gesture that reflects the pleasing profit growth for the year. While rival Kering reported slowing demand, Hermès continued its successful trajectory and was able to benefit from the sustained interest in luxury products. Specifically, sales in 2023 increased by 20 percent, reaching the remarkable sum of 13.4 billion euros. An increase in operating profit of approximately 20 percent to almost 5.7 billion euros underscores this performance, and net profit also increased by 28 percent to an impressive 4.3 billion euros. Analysts such as Chiara Battistini from Jefferies emphasize that Hermès dispels concerns about a declining growth in the luxury segment and shows a strong brand dynamism across all product categories and regions. Group CEO Axel Dumas did observe a decline in foot traffic in Chinese shopping centers, but this did not negatively impact Hermès's sales performance. He looks to the future with confidence: Continued growth is expected despite economic and geopolitical uncertainties. Dumas even announces price increases for the year 2024, which are expected to be on average between 8 and 9 percent. The confidence of Hermès stands in contrast to other luxury brands like Burberry and Kering, which are currently facing restructuring measures and are presenting less impressive results. Hermès thus confirms, alongside LVMH and Richemont, the stability in the high-priced luxury segment and its unique positioning.