Luxury fashion giants Hermès and Ralph Lauren have recently announced their impressive sales and earnings figures, showcasing resilience and growth in this dynamic luxury market.
Hermès Booms Globally, Reports “Outstanding Sales” for 2023 and Q4
French ultra-luxury brand Hermès has reason to celebrate as it reveals remarkable sales and results for both the entirety of 2023 and the fourth quarter.
In 2023, Hermès reported a revenue increase of 16% to €13.4 billion, with an even more impressive growth of 21% at constant exchange rates (CER). Recurring operating income surged by 20% to €5.7 billion, while net profit saw a substantial rise of 28% to €4.3 billion.
The fourth quarter saw a sales rise of 13% to €3.364 billion, a remarkable 18% increase at CER, despite challenges posed by a high comparison base in America and Asia.
Hermès Executive Chairman Axel Dumas attributed the brand’s success to its unique offerings and outstanding performance across all regions and métiers. Sales growth was consistent across all regions, with Europe, Asia (excluding Japan), and America all posting solid performances.
The company’s various métiers also contributed to its robust growth, with Leather Goods and Saddlery, Ready-to-wear and Accessories, Watches, and other Hermès Sectors all achieving significant increases.
Looking ahead, Hermès remains ambitious, aiming for continued revenue growth at constant exchange rates despite global economic uncertainties.
Ralph Lauren Posts Q3 Sales and Earnings Growth
Meanwhile, American luxury fashion brand Ralph Lauren has reported strong third-quarter earnings, showcasing growth and exceeding expectations.
Third-quarter earnings totaled $277 million, or $4.19 per diluted share, marking a notable 31% increase compared to the previous year on a reported basis. Adjusted earnings stood at $275 million, or $4.17 per diluted share, representing a solid 24% increase.
In terms of revenue, Ralph Lauren saw a 6% uptick to $1.9 billion on a reported basis, with a 5% increase in constant currency.
The company’s revenue performance varied across geographies, with North America, Europe, and Asia all posting solid growth. Notably, Ralph Lauren’s North America retail sector saw a commendable 5% increase in comparable store sales, driven by both brick-and-mortar and digital commerce.
Ralph Lauren expects continued revenue growth for fiscal 2024, aiming for low-single-digit growth compared to the previous year on a constant currency basis. Operating margin expansion and gross margin increases are also anticipated.
