Family managing luxury fashion Empire Hermes International It is set to collect dividends of over $5 billion Meanwhile, each employee will be back home with a $4,850 bonus after four consecutive years of record-breaking revenue. This is better than its competitors amid the widespread slowdown across the industry.
The roughly 100 heirs, who collectively control more than two-thirds of Hermes' shares, have seen dividends reach an all-time high this year, with payments rising sharply.
In 2024, the private luxury market was contracted by 2%, growing only a third of luxury brands.
However, Hermes has become famous for forcing customers to wait months, or even years, for years, to buy stratospheric priced handbags, but ignores trends and earns at a constant exchange rate. rose 15% to nearly $16 billion.
The second quarter saw growth rates slowed to 13%, and third quarter revenue slowed to 11%, while fourth quarter revenue increased by 18% to $4.2 billion.
In contrast, LVMH fell 2% year-on-year, with Kering falling 12% in the fourth quarter in a difficult year.
The family's wealth is estimated at $213.8 billion, and is largely tied to Hermes' holdings, which have more than tripled in value since early 2021.
Founded by Thierry Hermes in 1837, Hermes International remains under the stewardship of the Hermes Duma tribe for six generations.
Axel Dumas, who has been CEO since 2014, is the nephew of Olivier Dumas and former CEO Jean Louis Dumas, who has significantly expanded Hermes' global presence.
His cousin, Pierre Alexis Dumas, is the artistic director who oversees Hermes' creative direction.
The brand has benefited from a surge in demand during the pandemic and has temporarily reached a market capitalization of $313 billion after it announced its 2024 revenue on February 14th.
Despite being the wealthiest family in Europe, Hermes' heir is Bernard Arnault, founder of LVMH, and is the personal net worth.
At 75, Arnaud remains the wealthiest person France with a fortune of $186 billion.
The dividend came more than a decade after the Hermes family successfully attempted an Arnaud's acquisition.
In recent years, families have begun to diversify their wealth beyond luxury through their investment vehicle, Krefeld Invest.
Hermes proposed a dividend of $28 per share last year. This includes a special payment of $11 per share.
The increase was pending approval at the shareholders' meeting on April 30, with dividends above $27 per share for the previous year, twice the 2022 distribution amount.
The company historically issued a low special dividend of $5 per share, but a recent surge in profits has led to higher payments for both shareholders and employees.
Employees will also recognize the company's strong performance and receive a $4,850 bonus.
Over the past four years, total dividend payments to families amount to approximately $5.5 billion.
Even after distributing $2.8 billion to shareholders last year, Hermes maintained a net cash position of $13 billion at the end of December.
