Hermès Staff Across The World Will Get S$5,800 Bonus After Brand Reports S$6.24B In Profits

Hermès Staff Get Bonus As Company Wants To Share ‘The Fruits Of Growth’

All employees working for luxury brand Hermès will receive a bonus of 4,000 euros (S$5,800) this year, the company said.

The bonus is being disbursed under its “policy of sharing the fruits of growth with all those who contribute to it on a daily basis”.

It also comes after Hermès reported a bumper profit of 4.3 billion euros (S$6.24 billion) in 2023.

Hermès reports outstanding 2023 performance across all regions

The bonus for staff was revealed in Hermès’ 2023 Full-Year Results released on Friday (9 Feb), which happened to be the eve of Chinese New Year (CNY).

In the report, executive chairman Axel Dumas said the Paris-based brand achieved “outstanding performance” across all regions.

Its consolidated revenue amounted to 13.4 billion euros (S$19.5 billion) for the year, an increase of 16% at current exchange rates from 2022.

This resulted in a profit of 4.3 billion euros (S$6.24 billion) for the year, an increase of 28% from the year before.

By the end of December, all geographical areas covered by the brand posted “solid performance”, with homogeneous growth of around 20%, Hermès said.

While the group’s stores posted a 20% boost in sales, its wholesale activities fared even better, increasing 24% thanks to its travel retail business.

This is despite an overall slowdown in sales of luxury goods after the Covid-19 pandemic.

Hermès will pay staff bonus at the beginning of the year

In view of the positive results, Hermès — which sells the coveted Birkin bag — said it wants to share the “fruits of growth” with its employees who contributed to the success.

Thus, all its employees worldwide will get a bonus of 4,000 euros (S$5,800) in respect of 2023.

This will be paid “at the beginning of the year”, the report said.

This payout is “true to its commitment as a responsible employer”, Hermès added.

At the end of 2023, Hermès had 22,040 employees, having increased its workforce by about 2,400.

The group has created more than 5,400 jobs, over the past three years, it noted.

In July 2023, it also announced plans to allocate free shares to all its employees.

Hermès plans to raise prices this year

The good results prompted Hermès shares to rise as much as 4.9% in early Paris trading. It brought the gains so far in 2024 to 13%, reported Bloomberg.

However, the brand is also planning to raise its prices this year by about 8% to 9% on average, Mr Dumas told the media.

Its outlook remains positive for 2024, with an “ambitious goal for revenue growth” despite various economic, geopolitical, and monetary uncertainties, it said.

Also read: KL Store Sells Micro Hermès Bag For S$5,000, Enough Space To Keep Hairclips

KL Store Sells Micro Hermès Bag For S$5,000, Enough Space To Keep Hairclips

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