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Hermès to Pay €4,000 Bonus to Employees As Sales Surge

The French luxury house will pay €13 per share (around €1.4 billion) to shareholders after sales rose 29 percent last year.
Guest arrives at Hermès' Paris Fashion Week show carrying an exotic leather handbag. The brand is working to adopt more more sustainable alternatives for the popular style.
A guest arrives at Hermès' Paris Fashion Week show. (Getty Images)

Hermès will pay a one-time year-end bonus of €4,000 to each of its 19,700 employees amid surging sales and profits for the French luxury house.

Fourth-quarter sales rose 23 percent year-on-year, excluding currency swings, Hermès said Friday. Full-year revenues rose 29 percent last year to €11.6 billion ($12.4), allowing the top-end leather-goods maker to reclaim its position as luxury fashion’s third-biggest brand after Louis Vuitton and Chanel. (Kering’s Gucci had previously surpassed the Paris-based company in 2017). Net profit reached €3.4 billion.

At a meeting with analysts Friday, CEO Axel Dumas presented the year-end bonuses as well as plans to maintain recruitment with the inauguration of 2 new manufacturing sites in France. Last year, the group added 2,100 employees to its global headcount with average salaries rising 6 percent.

Amid record profits, Hermès will pay out roughly €1.4 billion to investors via its dividend of €13 per share, up 63 percent compared to its €8 dividend last year.

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Hermès Sales Surged Despite China Shopping Disruptions

Revenues jumped 23 percent in the fourth quarter, contributing to a ‘very strong’ 2022, said executive chairman Axel Dumas.

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