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Publication date: April 16, 2025
- Year of establishment: 1837
- Year added to the EUROSTOXX 50: 2021
- Highest price ever: €2.957 in February 2025
- Average trading volume: Approximately 73,000 shares per day
- Price performance over the past 12 months: +2.57%
Introduction about the company
Hermès International is one of the world's most prestigious luxury brands, founded in 1837 by Thierry Hermès in Paris. The company began as a saddlery shop and grew into a global icon in the luxury industry, known for its craftsmanship and exclusive products such as the Birkin and Kelly bags. Hermès symbolizes timeless elegance and quality, strongly focusing on artisan traditions and innovation.
Key figures & achievements
In 2024, Hermès achieved sales of €15.7 billion and a net profit of €6.43 billion. The company has over 25,000 employees worldwide, including over 15,500 in France. Hermès achieved a gross margin of 70.3%, making it one of the most profitable players in the luxury sector. Its market capitalization in April 2025 was €241.85 billion, placing Hermès among the most valuable listed companies in Europe.
History & development
Since its founding in 1837, Hermès has evolved from an artisan saddlery to a global luxury brand. The company has built its reputation on consistent craftsmanship and maintaining exclusivity. In 2021, Hermès was included in the EURO STOXX 50 index, underlining the recognition of its economic impact and market value.
Sector & competition
Hermès operates in the competitive luxury goods sector, competing with brands such as LVMH, Kering and Richemont. The company stands out for its focus on artisan craftsmanship, limited production, and avoidance of mass production. This strategy has led to strong brand loyalty and a unique position in the market.
Influence of Hermès International on the EURO STOXX 50
Hermès has been part of the EURO STOXX 50 since 2021 and, with a market capitalization of €241.85 billion, it has a relatively large share in the index accounting for 2.37% in December 2024. Although this represents a significant weighting within the index, Hermès' influence on total returns will be less noticeable for general investors in the EURO STOXX 50.
The stock is seen as stable within the luxury sector, with consistent earnings growth and strong margins. For investors investing in the EURO STOXX 50 through index funds, Hermès has a relatively large contribution to the performance of their portfolio. However, the impact will be less pronounced than for other larger companies within the index.
Investment analysis & outlook
Below is the price performance of Hermès compared to the EURO STOXX 50 over the past five years. While the index achieved a price performance of +70.40%, Hermès showed an increase of +259.59%. This impressive performance highlights the brand's strength and stable growth within the luxury sector.
In 2024, Hermès' share price increased by approximately 20%. This growth is due to sustained demand for luxury products, strategic price increases, and global expansion. Investors remain confident in Hermès' long-term potential, which is attributed to its high profit margins, strong brand loyalty, and planned product innovations such as the introduction of an haute couture line and new skincare products.
Despite the stock's high valuation, Hermès remains attractive to investors seeking stability, exclusivity, and structural growth within a defensive sector.
News & updates.
In 2024, Hermès paid an exceptional bonus of €4,500 to all employees worldwide in recognition of their contribution to the company's success. In addition, new stores were opened in cities such as Florence, Kitzbühel, Knokke-Le Zoute, Nashville, Phoenix, Shenzhen, and Guangzhou. About 20 existing stores are also being expanded. Furthermore, Hermès has announced the launch of an haute couture line in 2026 or 2027, further strengthening its position in the luxury market and creating new growth opportunities.
For more information about this company, please visit: www.hermes.com.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
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