Hermès will pay a one-time year-end bonus of €4,000 to each of its 19,700 employees amid surging sales and profits for the French luxury house.
Fourth-quarter sales rose 23 percent year-on-year, excluding currency swings, Hermès said Friday. Full-year revenues rose 29 percent last year to €11.6 billion ($12.4), allowing the top-end leather-goods maker to reclaim its position as luxury fashion’s third-biggest brand after Louis Vuitton and Chanel. (Kering’s Gucci had previously surpassed the Paris-based company in 2017). Net profit reached €3.4 billion.
At a meeting with analysts Friday, CEO Axel Dumas presented the year-end bonuses as well as plans to maintain recruitment with the inauguration of 2 new manufacturing sites in France. Last year, the group added 2,100 employees to its global headcount with average salaries rising 6 percent.
Amid record profits, Hermès will pay out roughly €1.4 billion to investors via its dividend of €13 per share, up 63 percent compared to its €8 dividend last year.
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Revenues jumped 23 percent in the fourth quarter, contributing to a ‘very strong’ 2022, said executive chairman Axel Dumas.
