Axel Dumas it is clear. The CEO of Hermès during the shareholders’ meeting (Paris, 30 April) he explored the market scenario. Three hundred and sixty degrees: from polarization to the importance of size, from the slowdown in the group’s growth to trust in China. Despite the context that is critical for many, he boasts reasons for the certainty of the brand he manages.
Because Dumas is serene
Dumas also confirmed that the luxury market is experiencing a period of change: “People no longer buy luxury goods based on their income, but according to their wealth”. The Hermès CEO has warned that the “real estate crisis” will have a greater impact on spending than the slowdown in economic growth. But he also described the eldest polarization of luxury. At the beginning of his mandate (June 2013) only a few percentage points separated the strongest operators from the weakest. Today the best could post annual gains of 20% and the worst slip by 20%, as WWD reports. Which is a bit like what happened in the first quarter of 2024 between Hermès itself and Guccifor example.
Size matters
Dumas also emphasized the benefits of having a certain size. Which? You can invest a lot in production, distribution And communication. And therefore conquer a greater share of consumers and the market. Hermès’ revenues are almost tripled in the last ten years. The share price increased tenfold, reaching 2,300 euros as of April 30. Some have suggested a division of the stock to encourage the entry of new private investors. But Eric de Seynes, chairman of the supervisory board, disagreed and responded that this possibility is not on the table for the moment. Les Echos reports it.
Moderate growth
Dumas, 53 years old, representing the sixth generation of the founding family, also highlighted a certain moderation in growth. In 2023 it was 20.6%, compared to 23.4% in 2022 and 41.8% in 2021. And you attributed this decline to “to the exhaustion of the post-pandemic euphoria”. But commenting on the Asian market, the same manager stated: “I believe that in Asia there is a very strong dynamic, with a growing middle class. I’m quite optimistic about the future growth of our industry.” (mv)
In the photo, from hermes.com, the illustration created for the brand by Stuart Patience
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