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Hermès reported better-than-expected sales on Friday.
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Stock in the French luxury group is up 23% this year and its market cap touched 300 billion euros.
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Hermès' success contrasts with Gucci owner Kering, which is struggling with a sales slide.
Hermès reported better-than-expected fourth-quarter results on Friday, sending its stock to a record high.
The French luxury goods group's sales for the final three months of 2024 hit 3.96 billion euros ($4.16 billion), up nearly 18% and beating analyst estimates of 3.69 billion euros.
Annual revenues rose almost 15% to 15.2 billion euros for the maker of Birkin bags, which can cost tens of thousands of dollars.
"In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the Hermès model and the agility of the house's teams," executive chairman Axel Dumas said in a statement.
Hermès stock rose as much as 4.2% in Paris on Friday, pushing the market cap above 300 billion euros for the first time. Shares have jumped 23% this year and about 300% over the past five years.
Its market cap is getting closer to that of rival LVMH Moët Hennessy Louis Vuitton despite sales being about a fifth of the Christian Dior and Givenchy owner.
LVMH is worth about 358 billion euros after its stock dipped 10% over the past 12 months. It is up almost 13% this year, however.
Hermès said it raised prices by 6% to 7% this year. Its strong performance comes as other luxury brands struggle amid a slump in high-end spending.
Earlier this week, Gucci owner Kering reported a 12% decline in sales, and British luxury house Burberry announced a turnaround plan in November to help boost revenue.
Analysts at UBS wrote in a note to clients that Hermès "delivered a solid end to the year confirming its unique business model and better trends in the sector in Q4, which disproportionately benefitted only a few players. The growth was healthy across the board with a sequential acceleration across almost all categories and regions, and especially the important Americas and APAC (ex-Japan)."
UBS has a "buy" rating on the stock. Hermès announced a special dividend of 10 euros per share.
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