- Hermès employees will receive a 4,500 euro bonus in response to the company’s 2024 financial performance.
- Bonuses have steadily increased at Hermès despite a luxury market slump.
- Hermès earned over $15 billion in revenue last year.
Hermès employees are cashing in on the company’s success.
On Friday, Hermès presented its 2024 financial report that showed better-than-expected sales. (Business Insider converted the euros to dollars based on currency rates as of Friday.)
The French luxury group said that sales reached 4 billion euros ($4.1 billion) during the fourth quarter, an 18% increase at constant and current exchange rates. Additionally, Hermès earned 15.2 billion euros ($15.9 billion) in revenue last year.
In response, Hermès employees are getting a 4,500 euro ($4,723) bonus. There are more than 25,000 staffers currently at Hermès.
“True to its commitment as a responsible employer and its willingness to share the fruits of growth with all those who contribute to it daily, Hermès will be giving out a bonus of €4,500 to all its employees worldwide at the beginning of the year in respect of 2024,” the report said.
Hermès has made a habit of gifting year-end bonuses to its employees, but the amount has steadily increased over the last five years. The company offered a 1,250 euro ($1,312) bonus following its 2020 financial results, then handed out a 3,000 euro ($3,148) bonus the following year.
The bonus was bumped to 4,000 euros ($4,198) following the company’s 2022 and 2023 financial results.
“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, whom I thank warmly,” Axel Dumas, executive chairman of Hermès, said in a statement on Friday.
The company’s financial results are a bright stop in the luxury industry, where some companies struggled to navigate a market slump in 2024. Share prices for LVMH, Burberry, and Kering all dropped last year.
Would-be luxury shoppers in China cut back on spending amid an economic crisis, while inflation prompted many Americans to avoid pricey luxury goods. In Europe, uncertainty surrounding politics led shoppers to hesitate.
“50 million luxury consumers have either opted out of the luxury goods market or been forced out of it in the last two years,” Claudia D’Arpizio of consulting firm Bain & Company said in a November report.
Representatives for Hermés did not respond to a request for comment from Business Insider that was made outside regular business hours.
