The prominent French luxury bag manufacturer, Hermes, has announced its plans to continue increasing product prices following a significant increase in sales. The fourth quarter of 2023 saw sales rise by an impressive 17.5 percent to reach 3.36 billion euros, based on constant exchange rates. This substantial growth has given the company the confidence to consider further price increases.
This performance surpassed the expectations of analysts who had predicted a sales increase of only 14 percent. Looking ahead, Hermes’ CEO, Axel Dumas, announced on Friday that the company intends to raise prices by between 8 to 9 percent over the coming year.
The previous year also saw Hermes increase its prices on a global scale by 7 percent. The company, renowned for its highly coveted and expensive Birkin bags, implemented this increase to compensate for rising production expenses.
Hermes to Reward Every Employee with a 4,000 Euro Bonus
Despite the economic challenges faced by many businesses, particularly in China, the traditional French company has managed to grow strongly across all regions. In recognition of the hard work and dedication of its workforce, Hermes plans to reward all 22,000 employees with a generous bonus of 4,000 euros.
It’s worth noting that Hermes bags are priced at a premium, often costing tens of thousands of euros. Their high price tag attracts a wealthy clientele who are typically more insulated from economic downturns and thus able to maintain their purchasing power even during periods of economic uncertainty.