In September 2021, in keeping with its commitments to training and knowledge transfer, Hermès opened the École Hermès des savoir-faire (Hermès School of Crafts), accredited by the French Ministry of Education and will issue a State-approved leather crafting license.
Hermes sales by geographical area as of the end of December 2022
Apparel and Accessories (+59% and +44% compared to two years ago) continued their strong growth momentum, driven by the success of the apparel, fashion accessories and footwear collections. The Spring Summer 2022 collection for Men and Women, launched in July and October respectively, has been a huge success.
The Silk and Textile Industry (+49% and +15% compared to two years ago) performed well. A new printing line has been put into operation according to the plan to develop a factory near Lyon to meet the needs of the market.
Fragrances and Cosmetics (+47% and +19% compared to two years ago) benefited from the successful launch of H24 fragrances for men and Twilly Eau Ginger , and the growth of the Cosmetics line with the premieres the third chapter in the Hermès Beauty story in the fall, Les Mains Hermès .
The Watch segment (+73% and +77% compared to two years ago) proves its strength. That’s thanks to the pinnacle of watchmaking expertise and the success of the H08 men’s watch artifact alongside the fashion house’s classics.
Other Hermès categories (+57% and +95% compared to two years ago) have confirmed their growth potential, in both Jewelry and Housewares.
Hermès’ outstanding business results and free cash flow in 2021
Recurring operating income amounted to 3.5 billion euros, up 78% from 1.981 billion euros in 2020. Thanks to the sizable sell-off of the collectibles and good leverage, operating profit margins Recurring activities have achieved a historic increase of 39% in sales. The number is up 8 points compared to 2020 and 5 points compared to 2019.
Consolidated net profit (shares of the Group) reached €2.445 billion (27% of sales), up 77% from €1.385 billion recorded at the end of December 2020.
Operating investments amount to 532 million Euros. Thanks to the outstanding results and beneficial effects of the working capital changes, adjusted free cash flow reached a record high of EUR 2,661 billion, or 2.7 times 2020.
After the distribution of ordinary dividends (476 million Euro); and includes repurchased shares (162 million euros for 142,131 shares, excluding liquidation contracts); adjusted net cash position increased by 2.166 billion euros to 7.07 billion euros.
The Hermès Group continues to recruit and add nearly 1,000 employees this year. As of the end of December 2021, the Hermès Group has 17,595 employees, including 10,969 in France, true to its commitment as a responsible employer.
In 2022, Hermès will pay a large bonus equivalent to 3,000 Euro to all employees in recognition of their commitment and contribution to positive results in challenging situations.
In 2021, the dramatic improvement in non-financial ratings reflected the acceleration of CSR commitments; and the sustainability aspect of the Hermès model of craftsmanship. MSCI has published an “A” rating for Hermès in its analysis of corporate resilience to environmental, social and institutional risks. The group has been included in the CAC40 ESG index, after Hermès was classified as “Advanced” by Virgeo Eiris. Sustainalytics ranked Hermès in second place in the Textiles sector. Hermès’ commitment to combating climate change is particularly recognized by its CDP rating with a score of “A-”.
The Hermès Group reaffirms its commitment to combating climate change by reassessing its reduction target at the end of the year. This adjustment was created to match the goal of controlling global warming below 1.5°C. These goals are scientifically calculated and approved by the Science Based Goals Initiative (SBTi). Since then, Hermès has committed to a 50.4% reduction in emissions in ranges 1 and 2 based on absolute values; and 58.1% intensity (per million Euro of gross margin) in range 3, for the period 2018-2030.
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