Latest news with #AxelDumas
Miami Herald
10-05-2025
- Business
- Miami Herald
Birkin bag maker faces major problem
Paris knows how to put on a show - but this wasn't fashion week. Inside the gilded walls of Salle Pleyel, better known for hosting France's César film awards, a luxury giant hosted its shareholders' meeting with cinematic flair. Xylophones rang out. Artsy films played on screen. Executives toasted their financial dominance with curated charm. Don't miss the move: Subscribe to TheStreet's free daily newsletter The performance wasn't just for show. The company posted annual revenue of €15.2 billion (about $17.3 billion), with net profit climbing to €4.6 billion (roughly $5.2 billion)- surpassing luxury titans like LVMH and Kering. Related: Top luxury fashion brands just made a quiet change Its CEO took the stage with confidence, brushing off economic uncertainty, looming U.S. tariffs, and a spike in counterfeit goods. But not everyone in the audience left reassured. From rising copycat culture to sustainability concerns and shareholder tensions, cracks in the polished façade started to show - leaving investors wondering whether the brand's ironclad reputation may finally be facing real pressure. The brand? Hermès International (HESAF) - maker of the ultra-exclusive Birkin bag. CEO Axel Dumas tried to downplay the counterfeits, like the now-viral "Wirkin" bag (a well-known knockoff that mimics Hermès's iconic silhouette for a fraction of the price). "Our clients can feel the difference," he said, noting Hermès has a strong anti-counterfeit team. "Sometimes you are copied." That casual tone didn't sit well with some. While Dumas may not be worried, luxury shoppers are becoming savvier. And younger consumers in particular aren't always interested in heritage if a trendy fake looks just as good in an Instagram post. Related: Luxury designer brand flags shift in customer behavior According to the 2023 Global Anti-Counterfeiting Consumer Survey by Michigan State University's A-CAPP Center, 52% of consumers globally said they've knowingly purchased counterfeit products, with economic benefits cited as the leading motive. And unlike past years, this trend isn't hiding in the shadows. TikTok users are flaunting their lookalikes and openly mocking luxury markups. One TikTok post by @styledbykristir (with over 8.6 million views) shows off the Walmart Birkin - aka the "Wirkin." And the price? Less than $100. That kind of visibility is hard to ignore, especially when Hermès bags regularly sell for over $10,000 - or more - on resale markets. As demand for the "look" continues to rise, Hermès' moat of exclusivity could be narrowing. Tariffs were another source of tension during the meeting. Dumas acknowledged that new trade measures could increase production costs, but said the company plans to pass those costs on to customers, whom he believes are resilient enough to absorb them. "I'm not too worried about tariffs," he said. "We can deal with these as we have done in years past." But loyalty has limits, even in luxury. If prices rise while knockoffs get better and more visible, it's not hard to imagine some shoppers opting out. And with competitors like Louis Vuitton expanding production in the U.S. to hedge against global volatility, Hermès' insistence on staying exclusively French may come at a cost. "There's a story in 'Made in France,'" Dumas told shareholders when asked if the company would ever consider building factories elsewhere. "It is essential." He's not wrong - craftsmanship is part of the brand's identity. But as shareholders pushed for more innovation and environmental accountability, the company's casual approach to those concerns raised some eyebrows. Hermès still sets the gold standard. But between tariffs, copycats, and a shifting global market, even gold isn't immune to pressure. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Fashion United
02-05-2025
- Business
- Fashion United
PETA attends Hermès meeting, calls for vegan bags; Dumas speaks of ‘ethical farms'
'When will Hermès ban wild animal skins and embrace ethical luxury by launching vegan Birkin and Kelly bags?' This was the question that PETA, which owns shares in the French company, put to chief executive officer Axel Dumas on April 30, during Hermès's general meeting. 'The action follows PETA's new DIY video on YouTube, which has garnered over one million views across all platforms and shows a fashion blogger teaching her audience how to make an 'Hermès Birkin bag' from scratch, starting with a live three-year-old crocodile,' explained PETA, an acronym for People for the Ethical Treatment of Animals, in a statement. 'Numerous designer brands are ditching deadly, destructive wild animal skins, but Hermès is still clinging to the same old cruelty,' said Tracy Reiman, executive vice president of PETA, urging the French company 'to use only luxury vegan materials, which do not involve the torture and killing of sentient beings'. Dumas told shareholders he was 'open to world' while rejecting PETA's request to visit an Australian intensive farm supplying Hermès together Dumas's response during the meeting, according to PETA, was an empty and shameful attempt to avoid all responsibility. Dumas told shareholders he was 'open to world' while rejecting PETA's request to join him on a visit to an Australian intensive farm supplying Hermès, where it claims crocodiles languish in tiny, dirty cages before workers electrocute them, cut their throats and stab them in the brain with screwdrivers, sometimes while they are still conscious. FashionUnited contacted Hermès for an official statement on PETA's intervention at the meeting, but has not yet received any comment. Full text of question to Hermès president Axel Dumas Here is the full text of the question to Dumas: 'My name is James Fraser and I have a question for chief executive officer Axel Dumas on behalf of People for the Ethical Treatment of Animals. An investigation into Australian farms owned by Hermès and its suppliers shows that crocodiles are confined to cramped cages or small concrete pens filled with dirty water before being electrocuted, dragged and mutilated with blades and screwdrivers, some while still conscious. On farms in South Africa that supply Hermès with ostrich skins, young animals spend their short lives in barren pens. At a slaughterhouse, workers force ostriches into stun boxes, causing many to slip and fall before slitting their throats. In response to the investigation, Hermès continues to mislead the public and shareholders by referring to Cites, the Convention on International Trade in Endangered Species of Wild Fauna and Flora, knowing full well that this regulation concerns the number of animals traded, not the horrific way they are raised and killed.' 'Monsieur Dumas, selling macabre accessories made from the body parts of wild animals is tarnishing our company's reputation and alienating the conscious consumers who represent the future of luxury fashion. When will Hermès ban wild animal skins and embrace ethical luxury by launching vegan Birkin and Kelly bags?' Fraser concluded. Following Dumas's response, the animal rights association reiterated in a statement that it would not be possible to speak of 'ethical farming' as the chief executive officer of Hermès had done when, 'obviously, there is nothing moral about cramming animals into overcrowded cages and brutally slaughtering them for their skin. From Texas to Zimbabwe to South Africa, PETA has denounced the appalling conditions in which animals are raised and killed for Hermès accessories, and the fashion house will continue to be pressured by PETA until it stops selling products made from the skin of tormented animals and switches to luxury vegan materials'. PETA finally noted that many other fashion houses such as Chanel, Balenciaga, Burberry, Mulberry, Victoria Beckham, Diane von Furstenberg and Vivienne Westwood have banned the use of reptile or other wild animal skins from their collections. Hermès, AW25. Credits: ©Launchmetrics/spotlight This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Yahoo
30-04-2025
- Business
- Yahoo
Hermès AGM Tackles Tariffs, Dupes and Why It Won't Produce in the U.S.
PARIS – The Hermès International shareholders' meeting met the moment, with the company holding its position as France's largest luxury company in terms of market capitalization. 'It may last a day or two, but at the moment we are the largest French capitalization in the financial markets,' said chief executive officer Axel Dumas. More from WWD Louis Vuitton Has Bumped Up Handbag Prices in the U.S. Hermès Continues to Increase Handbag Production Amid Rising Demand Hermès Preps for Potential Price Rise in the U.S. in Face of Tariffs Held at the Salle Pleyel, which hosts splashy awards shows such as the César awards, Hermès celebrated its pole position with an opening xylophone performer, followed by an eclectic series of films sprinkled throughout the presentation. The themes varied from tales about the company's craftsmanship and how bags are repaired and restored to an ode to this year's theme of the 'art of drawing,' and a madcap, Wes Anderson-style slick take on their fanciful immersive traveling treasure hunt that popped up in locations including Hong Kong and Dubai. The panel of executives presiding over the events included supervisory board chair Éric de Seynes, chief financial officer Eric du Halgouët and Dumas. Hermès' performance in 2024 was 'solid in a rather unpredictable economic and geopolitical context,' du Halgouët said. Dumas assured the audience that Hermès' solid performance is not in danger, despite the economic uncertainties that have hit the luxury sector hard, and the looming U.S. tariffs. 'I'm not too worried about our industry. I'm not too worried about tariffs. I would rather there be no tariffs, of course, but we can deal with these as we have done in years past,' he said. The executive confirmed that tariffs, as well as any increase in production costs, will be passed on to the customer, who is resilient enough to absorb it. The company touted its latest round of full-year results, with annual revenue at 15.2 billion euros, up 15 percent at constant exchange in 2024. The cash flow was 3.8 billion euros, up 18 percent year-over-year, while net profit was 4.6 billion euros, up from 4.3 billion euros the year prior. The results handily beat other companies such as LVMH Moët Hennesy Louis Vuitton, which saw its net profit down 17 percent, and Kering, which saw its net profit slide 62 percent. Du Halgouët said that the 2024 numbers looked like a slowdown compared to 2023, but that 'was an outlier year' due to all-time sales highs post-pandemic. The most recent year was 'more a return to normal.' Dumas also shrugged off dupes — this year's Wirkin phenomenon comes to mind — as products a discerning client can recognize. 'I'm not too worried. Our clients can feel the difference. We fight against dupes and have a great team to fight counterfeit products…[but] sometimes you are copied.' During the question-and-answer session, shareholders poked fun at the rivalry between the families that own Hermès and the Arnaults, who control LVMH, and who once made a run for Hermès. Dumas assured the audience that the Arnault family has not overstepped any shareholder declaration threshold since 2017. Another asked if Hermès might start producing in the U.S., as Louis Vuitton has done with its factories in Texas. The executive dismissed the suggestion, stating that Hermès already has a four-year plan to open new production facilities in France and will not deviate, plus the storytelling of 'Made in France' is key to the brand's success. 'It is indeed essential for us to produce where there is a story of culture and know-how that creates beautiful objects,' he said. Hermès produces some products outside of France, such as lacquer and silk, but that is only because those countries are the best in class for their categories. Other audience members carefully phrased their questions with a balance of flattery and inquiry, asking what makes Hermès stronger than other fashion companies. Dumas reflected that the company's focus on craftsmanship over branding has given it strength. He credited the last financial crisis in 2008 as raising the brand's value. 'There was a flight to quality,' he said. 'Hermès is the gold standard in a way.' He also highlighted that the company's marketing budget is small in comparison with its cash flow and conducts more personalized events rather than big campaigns, which makes it 'stand out compared to other competitors.' Rivalries aside, shareholders expressed concerns about the environment — both physical and economic — and Dumas sought to assuage their worries. One shareholder remarked on the current heat in Paris, and inquired why board members were 'traditional' and not being filled by those with eco-credentials. Dumas defended the board nominees: BNP Paribas CEO Jean-Laurent Bonnifé, diplomat Bernard Emié and Bel Group CEO Cécile Béliot-Zind, who has a background in agri-food. 'These three candidates are people who have great humanity and a very good understanding of the value of things,' he said. 'We're not expecting the supervisory board members to challenge the know-how that we already have in-house; instead, we're asking for preparedness in understanding the issues in depth [and] reflection.' Responding to a question about animal welfare and leather alternatives, Dumas said that the company is 'open' to next-gen materials such as mushroom leather and lab-grown leather, but that the products do not yet meet Hermès' standards. The challenge is getting these materials to scale, and the company is investing heavily in research and development, he added. Regarding the 6 million shares once owned by heir Nicolas Puech that are now missing, Dumas said: 'You've probably read in the media that he can't find his shares, and it's not a surprise to us. There are a number of procedures ongoing that I hope will provide some clarity.' Dumas was also asked how shareholders can better access Hermès special events, and if the brand would consider a membership club. De Seynes demurred, asking those interested to join the French Equestrian Federation if they are interested in access to horse races such as Saut Hermès. As far as arranging visits to the company's sites, 'workshops have to work,' he joked. 'We are affected, like others, by what happens. We do operate in the real world. It just so happens that we are usually affected after the others. If there is a crisis, sometimes its just a matter of time,' said Dumas. Shareholders also questioned why the company is sitting on its cash reserves, instead of disbursing it in dividends. Du Halgouët said that the large cash reserves help it better navigate lean times, such as during the pandemic. The company's 'aim is to not deal with concessions.' Still, it uses the model to enter new markets such as Indonesia, but the hope is to start with a concession and then purchase the business, as it did in UAE. The duty-free model will remain the same, Dumas said, as travel retail is not the company's expertise. But he doesn't see mass expansion in the future to continue to grow revenues, and has in fact closed stores since he joined the management team. 'We have fewer stores and more turnover. Due to the lack of stores in the right location, and it's true that often it becomes a very, very large investment, so these are large investments that we carry out thanks to our cash flow,' he added. 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Yahoo
21-04-2025
- Business
- Yahoo
Hermes achieves 9% revenue increase in Q1 2025
Luxury fashion house Hermes has reported a consolidated revenue of €4.13bn ($4.70bn) in the first quarter (Q1) of 2025 (FY25), marking a 9% rise at current exchange rates and a 7% increase at constant exchange rates compared to the same period in the previous year. The company witnessed growth across all regions where it operates. The Asian market, excluding Japan, saw a modest increase of 1% to €1.97bn, despite facing a high base for comparison from the previous year and reduced traffic in Greater China since the end of the first quarter in 2024. Meanwhile, Japan experienced 17% sales jump, reaching €421m in Q1 FY25, attributed to the strong patronage of domestic customers. Sales in the Americas rose by 11%, continuing the strong performance seen in the last quarter of 2024, with the US showing robust activity in March. Sales in Europe, excluding France, rose by 12.7% to €501m over the quarter, while France itself saw a 14% rise, buoyed by steady demand from locals and an influx of tourists. The Middle East, categorised under 'Other' geographical areas, maintained its positive trajectory with a 14% increase in sales. By the end of March 2025, Hermes observed growth across all its business lines except for Watches and Perfume and Beauty. The Leather Goods and Saddlery division reported a 10% rise, propelled by continuous demand and new additions to their collections such as the Médor and Mousqueton bags. The Ready-to-wear and Accessories division saw a 7.2% increase, while Silk and Textiles enjoyed a 4.5% uptick. Conversely, the Watches division faced a 10% decline in sales. Hermès executive chairman Axel Dumas said: 'In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever: uncompromising quality, creativity at the heart of all development, and vertical integration, a guarantee of preserving unique savoir-faire. 'Despite a high comparison basis in the first quarter, the group achieved solid growth in sales, thanks to the trust of its customers and the commitment of the teams, whom I thank warmly.' Despite current economic, geopolitical, and currency fluctuations globally, Hermes maintains an optimistic medium-term outlook for revenue growth at constant exchange rates. In October last year, Hermès faced renewed legal challenges from US consumers who allege that the French luxury brand requires customers to make additional purchases before allowing them to buy its Birkin bags. "Hermes achieves 9% revenue increase in Q1 2025" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
17-02-2025
- Business
- Yahoo
Hermès achieves robust 15% revenue growth in 2024
Luxury fashion group Hermès has reported annual revenue of €15.17bn ($15.91bn) in the fiscal year 2024 (FY24), up 15% at constant exchange rates and 13% at current exchange rates compared to 2023. The company experienced a consistent upswing across all its geographical markets, with the Americas leading the way. In Asia, excluding Japan, sales increased 7%, while Japan itself experienced a remarkable 23% surge. The Americas region reported a solid 15% increase in sales. Europe also showed strong results, with non-French European sales climbing by 19% and French sales by 13%. The numbers were bolstered by strong local demand, customer loyalty and dynamic tourism. Hermès' recurring operating income rose to €6.15bn in FY24, which represents 40.5% of sales, a notable increase from €5.6bn the previous fiscal year. The company's diluted earnings per share also improved, reaching €43.87 in FY24, up from €41.12 in FY23. Net profit for Hermès stood at €4.60bn, equivalent to 30.3% of sales, although this is slightly down from 32.1% of sales in FY23. The fourth quarter alone saw sales hitting €4bn - 18% growth at both constant and current exchange rates. Hermès has been proactive in recruitment efforts, adding 2,300 new employees to its ranks, including 1,300 positions in France. By the end of 2024, the group's total employee count exceeded 25,000, with more than 15,556 based in France. Since 2023, Hermès has generated 7,000 jobs, 60% of these within France. Executive chairman Axel Dumas stated: 'In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the Hermès model and the agility of the house's teams, whom I thank warmly. While preserving the group's major balances and its responsibility as an employer, the house is staying the course, attached more than ever to its fundamental values of quality, creativity and savoir-faire.' "Hermès achieves robust 15% revenue growth in 2024 " was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
