The French luxury house Hermès is having a successful 2021 in all respects, as revealed in a statement released by the brand.
For the full year of 2021, the luxury group posted a net profit of 2.445 billion euros and its sales amounted to 9 billion euros for the year.
While the pandemic was the largest cause of poor results during 2020 for many sectors including luxury, 2021 was a year of financial success.
In 2021, Hermès also far exceeded its pre-pandemic financial results : its sales amounted to €8.982 billion in 2021 and were up 30% compared to 2019. The company’s operating margin reached 39.3% in 2021 and becomes a record figure never achieved before : it was 31% in 2020, and 34% in 2019. Finally, free cash flow, for its part, is “a historic level” of 2.661 billion euros, a result 2.7 times that of 2020.
“After 185 years, Hermès succeeded in its best year, 2021 is an exceptional year, “said the manager of Hermès, Axel Dumas, during a conference call with journalists.
Asia and America, the two driving markets for the brand
Indeed, Asia and America are the two markets that have recorded the strongest growth over 2020 and 2019. The Asian sector was notably driven by China, Australia and Singapore, which achieved a 65% increase in sales over the previous two years. This figure rises to 24% for America. In other markets, Europe excluding France gained 10% over two years.
This trend was confirmed once again by physical sales in Hermès international boutiques, which rose 41% at constant exchange rates over two years.
Finally, Hermès is confident about fiscal year 2022, although the company says it is “still difficult to assess the impact of the Covid-19 pandemic. The highly integrated craftsmanship model, the balanced distribution network, the creativity of our collections and the loyalty of our clientele allow us to face the future with confidence,” Hermès said.
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