Why can Herm è s inherit six generations without collapsing in the face of malicious acquisitions?

In February 2023, French luxury brand Herm è s released its 2022 financial performance report. According to the report data, Herm è s consolidated revenue for the fiscal year 2022 was 11.602 billion euros, an increase of 29% at current exchange rates and 23% at fixed exchange rates compared to 2021. The recurring operating revenue reached 4.697 billion euros, which is 40.5% of the sales revenue. The net profit (group share) reached 3.367 billion euros, with a net profit margin of 29%.

At the same time, Herm è s also announced its fourth quarter financial report for 2022 in its 2022 financial report. According to financial report data, the huge sales momentum recorded at the end of September 2022 continued to maintain, with sales reaching 2.991 billion euros, an increase of 26% at current exchange rates and 23% at constant exchange rates. Compared to the third quarter, sales in the fourth quarter have declined slightly.

Analyzing Herm è s' 2022 financial report, it was found that compared to the 2021 fiscal year, Herm è s sales revenue continued to grow. In February 2022, Herm è s released its annual performance report for the fiscal year 2021. As of the end of December 2021, the group's consolidated revenue reached 8.982 billion euros, an increase of 42% at fixed exchange rates and 41% at current exchange rates compared to 2020. Over the past two years, based on fixed exchange rates, the growth rate in the first and second half of 2021 was 33%. Regular operating revenue increased by 78% to 3.53 billion euros (39.3% of sales). The net profit (group share) reached 2.445 billion euros, an increase of 77% compared to 2020.

For achieving excellent performance in 2022, Herm è s sixth generation successor CEO Axel Dumas analyzed in his financial report, "In 2022, Herm è s had an unusual year, mainly due to its strong performance in the international market. This success reinforces our approach as a handcrafted and highly integrated company, primarily in France: a design company that offers products designed for practicality, confident style, and uncompromising quality."

In Axel Dumas's view, inheriting the spirit of craftsmanship and handcrafting ensures the quality and differentiation of Herm è s, thus winning the recognition of customers. Through reviewing the history of Herm è s, it has been found that since its establishment, Herm è s has adhered to the principle of handmade production. Although industrial progress has made mechanical manufacturing more efficient, fast, and accurate, Herm è s' original intention has never changed (Future Think Tank, 2020).

Axel Dumas's reason for the persistence of handicrafts is: "The main strength of Herm è s comes from the love of the opponent's craftsmanship, and Herm è s' philosophy is to keep handicrafts alive."

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