Hermès
| File:Hermes-Logo.svg Hermès logo featuring a ducal horse-drawn carriage | |
| Company type | Public (S.A.) |
|---|---|
| Industry | Luxury goods, fashion |
| Founded | 1 January 1837 in Paris, France |
| Founder | Thierry Hermès |
| Headquarters | Paris , France |
Area served | Worldwide |
Key people | Patrick Thomas (CEO) |
| Products | Leather goods, silk items, lifestyle accessories, home decor, perfumery, jewelry, timepieces, ready-to-wear collections |
Number of employees | Not specified |
| Parent | None |
| Website | www |
Hermès International S.A. (, ) is a prestigious French luxury fashion brand established in 1837. The company is renowned for its expertise in leather goods, silk items, lifestyle accessories, home decor, perfumery, jewelry, timepieces, and ready-to-wear collections. Since the 1950s, its emblem has depicted a ducal horse-drawn carriage.
Origins in the 19th Century
Born in Krefeld, Germany, Thierry Hermès was the son of a French father and a German mother. The family relocated to France in 1828. In 1837, Hermès founded a workshop specializing in harnesses within Paris's Grands Boulevards district, catering primarily to European aristocracy. He crafted superior-quality wrought harnesses and bridles for carriage use, earning prestigious awards at the Paris Exposition Universelle events of 1855 and 1867.
In 1880, Hermès's son Charles-Émile assumed control and transferred operations to 24 rue du Faubourg Saint-Honoré, the brand’s current location. Alongside his sons Adolphe and Émile-Maurice, he broadened the business into saddlery and retail sectors, serving high-profile clients across Europe as well as markets in North Africa, Russia, Asia, and the Americas. The year 1900 marked the launch of the Haut à Courroies bag, tailored for riders to transport saddles.
Hermès Frères Period
Following Charles-Émile’s retirement, his sons Adolphe and Émile-Maurice managed the rebranded Hermès Frères. Émile-Maurice acquired exclusive rights to utilize zippers for leather products and apparel within France, introducing this innovation domestically. In 1918, Hermès produced the first leather golf jacket equipped with a zipper for Edward, Prince of Wales. This zipper became famously known as the fermeture Hermès (Hermès fastener).
Throughout the 1920s, Émile-Maurice expanded into accessory and clothing lines while mentoring his three sons-in-law—Robert Dumas, Jean-René Guerrand, and Francis Puech—as business partners. In response to his wife’s request in 1922, he designed the brand’s inaugural leather handbags.
By 1924, Hermès had established two outlets beyond Paris in the United States. The debut women's haute couture collection appeared in Paris in 1929. The 1930s introduced signature items such as the leather "Sac à dépêches" (later renamed the "Kelly bag") in 1935 and silk carrés scarves in 1937—both becoming iconic elements of French heritage. By 1938, classics like the "Chaîne d'ancre" bracelet and equestrian apparel were added to their offerings. Although Hermès briefly re-entered the U.S. market through Neiman Marcus during this period, it eventually withdrew. In 1949, the company unveiled its first fragrance, "Eau d'Hermès," alongside silk neckties.
Starting from the mid-1930s until the 1950s, Hermès collaborated with Swiss watchmaker Universal Genève to create men's wrist chronographs and women's Art Déco style cuff watches featuring co-branded dials.
Émile-Maurice encapsulated Hermès’s guiding principle as a combination of "leather craftsmanship, sporting spirit, and a legacy of sophisticated elegance."
Era Following Émile-Maurice Hermès
Robert Dumas-Hermès (1898–1978), who took over from Émile-Maurice in 1951, collaborated extensively with his brother-in-law Jean-René Guerrand. As the first leader outside the direct lineage of Hermès père, he adopted the Hermès surname himself. During his tenure, the company introduced its iconic Duc carriage with horse emblem alongside the distinctive orange packaging in the early 1950s. Dumas broadened the brand’s offerings by launching original handbags, jewelry, and accessories, placing a strong emphasis on innovative silk scarf designs.
In 1956, Life magazine showcased Grace Kelly carrying the "Sac à dépêches" bag, which soon became widely known as the "Kelly" bag and experienced a surge in popularity. The perfume branch was established as a separate entity in 1961 with the debut of "Calèche," a fragrance named after Hermès's logo. In 2004, Jean-Claude Ellena was appointed as the house perfumer, crafting notable scents including the acclaimed Hermessence collection.
Period of Decline and Renewal
Although Hermès expanded internationally during the 1970s—such as opening a boutique at The Peninsula Hong Kong in 1975—the brand faced a downturn largely because it remained committed to natural materials while competitors embraced synthetics. This adherence led to slower production rates. Nonetheless, a renewed consumer preference for natural ingredients revived interest in Hermès perfumes and improved business outlooks.
Jean-Louis Dumas, son of Robert Dumas-Hermès, joined the company in 1964 after gaining experience at Bloomingdale's and assumed the chairmanship in 1978. He redirected Hermès’s focus toward silk, leather goods, and ready-to-wear collections by merging traditional artisanal techniques with contemporary product innovations to reverse declining sales. Partnering with designers Eric Bergère and Bernard Sanz, he launched groundbreaking products such as python leather motorcycle jackets and ostrich-skin denim jeans. This approach increased annual revenues from US$50 million in 1978 to US$460 million by 1990.
In 1979, Dumas initiated an advertising campaign aimed at younger demographics featuring a denim-clad woman adorned with an Hermès scarf. This marked a shift from nostalgic branding to modern aspiration but stirred debate both inside and outside the company.
The 1970s also saw the creation of La Montre Hermès, a watchmaking subsidiary based in Bienne, Switzerland. Throughout the following decade, Dumas fortified supplier partnerships and acquired shares in esteemed French manufacturers of glassware and silverware such as Puiforcat, Saint-Louis, and Périgord.
Expansion and Development
Starting in the 1980s, tableware became an essential product category for Hermès. By 1990, its range had grown to over 30,000 items incorporating materials like porcelain and crystal.
Hermès transferred its workshops and design studios to Pantin near Paris. In June 1993, the company went public on the Paris Bourse, issuing 425,000 shares at FFr 300 (approximately US$55), which were oversubscribed thirty-four times. Jean-Louis Dumas remarked that this public offering helped ease family disputes by enabling members to sell shares amicably.
The family maintained roughly 80% ownership, ensuring that Jean-Louis Dumas and relatives remained listed among Forbes billionaires. Mimi Tompkins of U.S. News & World Report described Hermès as "one of Paris' best guarded jewels."
Dumas reduced franchise outlets from 250 to 200 while increasing company-operated stores from 60 to 100 to enhance sales oversight. Although this strategy incurred short-term costs near FFr 200 million, it was designed to improve profitability over time. With approximately FFr 500 million earmarked for expansion, Hermès targeted China, inaugurating a boutique at The Peninsula Beijing in 1997.
That same year, Jean-Louis recruited Belgian designer Martin Margiela to lead the women's ready-to-wear line.
By the late 1990s, Hermès continued acquiring franchise locations while expanding its network of directly managed boutiques. In September 1999, Jean-Louis purchased a 35% stake in the Jean-Paul Gaultier fashion label for FFr 150 million. During this era, Hermès encouraged customers to faites nous rêver (make us dream), creating artistically unique bespoke pieces.
From the 2000s to the Present
In 2003, Martin Margiela departed from Hermès, paving the way for Jean Paul Gaultier to assume the role of head designer. Gaultier introduced his inaugural ready-to-wear collection for the fall/winter 2004–05 season.
After a 28-year tenure at Hermès, Jean-Louis Dumas stepped down in January 2006 and passed away in 2010. Patrick Thomas, who had been with the company since 1989 and shared leadership duties with Dumas from 2005, became Hermès' first CEO from outside the founding family.
By February 2015, Hermès announced a revenue growth of 9.7%, surpassing €4 billion in sales. This expansion was particularly pronounced internationally: Asia (excluding Japan) grew by 7%, America by 10%, and Europe by 7%, fueled by strong retail performance.
In March 2018, Hermès unveiled its largest retail space to date at the Dubai Mall. The following year, Forbes placed Hermès at number 33 on its list of the "World's Most Valuable Brands." According to the 2021 WIPO report, Hermès climbed to seventh place worldwide for industrial design registrations under the Hague System, improving from fifteenth in 2019.
In February 2023, a landmark decision by a New York court required artist Mason Rothschild to pay $133,000 for copyright infringement related to his digital representations of the Birkin bag as NFTs.
Impact of COVID-19 and Recovery
During the COVID-19 pandemic, Hermès experienced a 7% decline in sales and a 9% reduction in net profit in 2020. While European operations slowed down, growth in Asia during the latter half of the year helped offset some losses.
In 2021, Hermès reported sales reaching €9 billion alongside a net profit of €2.445 billion and an operating margin of 39.3%, surpassing figures recorded before the pandemic.
The first quarter of 2022 saw sales rise by 33% to €2.765 billion, outperforming expectations despite geopolitical instability and ongoing lockdowns in China. Following Russia's invasion of Ukraine, Hermès temporarily shut its three stores there, impacting approximately 60 employees. In the first half of 2022, net profit increased by 39.7% to €1.64 billion on sales of €5.475 billion, with an operating margin hitting a record high of 42.1%.
Sales for Q1 2023 surged by 22% to €3.4 billion. That year also marked Hermès' legal victory over Mason Rothschild concerning Birkin bag NFTs and saw the announcement of four new production facilities in France: Espagnac, Loupes, Riom, and Charleville-Mézières. Additionally, the company launched "Hermès in the Making," a traveling exhibition showcasing its artisanal expertise.
In Q3 2023, Hermès achieved a growth rate of 16%, outperforming competitors LVMH (which remained flat) and Kering (which declined). Industry analysts credit this resilience to Hermès’ strong brand identity, compelling storytelling, and consumer preference for understated luxury.
In April 2025, Hermès declared price adjustments in the U.S., effective May 1, due to new tariffs imposed during the Trump administration. Despite reporting €4.1 billion in revenue for Q1 2025—a 7.2% increase but below projections—Hermès surpassed LVMH to become the world’s most valuable luxury group.
Designers
Throughout its history, Hermès has been shaped by influential designers such as Lola Prusac, Jacques Delahaye, Catherine de Karolyi, Monsieur Levaillant, Nicole de Vesian, Eric Bergère, Claude Brouet, Tan Giudicelli, Marc Audibet, Mariot Chane, Bernard Sanz, Martin Margiela, Jean-Paul Gaultier, Christophe Lemaire, Véronique Nichanian (men’s wear designer since 1988), and Nadège Vanhee-Cybulski, who took over from Lemaire in 2014.
Goods and products
By 2008, Hermès had established 14 distinct product categories, encompassing leather goods, scarves, ties, menswear and womenswear, fragrances, watches, stationery, footwear, gloves, enamelware, decorative arts, tableware, and jewelry.
The sales breakdown approximates 30% from leather goods, 15% from apparel, 12% from scarves, with the remaining 43% attributed to other product lines. The company exercises rigorous oversight over both design and production processes and does not engage in licensing agreements.
Hermès follows a classic business approach that eschews mass manufacturing and automation. The majority of its items are handcrafted in France at Les Ateliers Hermès workshops. Typically, a single craftsman completes each piece from beginning to end to guarantee exceptional quality and individuality.
Scarves
The carré or scarf was first introduced in 1937 with an initial print measuring 70 cm by 70 cm titled "Jeu des Omnibus et Dames Blanches." Hermès managed the entire production chain—from procuring raw Chinese silk to weaving fabric that was twice as durable as the standard scarves available at the time.
Designers dedicate several years to creating new patterns that are printed through a meticulous screen-printing process using a palette of over 70,000 colors. Production commenced in Lyon during the same year Hermès marked its 100th anniversary.
Contemporary carrés measure , weigh , and incorporate silk derived from approximately 250 mulberry moth cocoons. Each hem is sewn by hand; designs vary widely with equestrian themes being particularly favored. Two main collections plus limited editions are launched annually, including blends of cashmere and silk.
Since their debut, Hermès has developed more than 2,000 exclusive scarf designs. The "Brides de Gala," released in 1957, has sold over 70,000 pieces. Globally, one Hermès scarf is purchased every 25 seconds; by the late 1970s sales had surpassed 1.1 million scarves worldwide.
Neckties
Hermès introduced its men's silk necktie line in 1946 featuring a variety of patterns and widths. Neckties account for roughly 10 percent of the brand’s yearly revenue.
Partnership with the Tuareg
Hermès collaborates with Tuareg artisans to craft silver jewelry that incorporates traditional Saharan nomadic motifs into various products including scarves.
Apple Watch Hermès
In alliance with Apple, Hermès offers co-branded Apple Watch editions. With the Series 10 release scheduled for September 2024, a new Titanium Edition will be available through both Apple and Hermès retail outlets. The Apple Watch Hermès collection includes exclusive watch bands, distinctive colors, and custom digital watch faces that reflect the identities of both brands.
Leather goods
Hermès is celebrated for its handcrafted luggage and handbags, which require between 18 to 24 hours of labor per item—for example, producing a Kelly bag takes approximately 18 hours. Leather materials are sourced globally, and customers often experience waiting periods ranging from six months to a year for signature bags. Repairs are handled via Hermès boutiques as well as their Les Ateliers Hermès workshop located in Pantin.
The legendary Birkin bag was co-created in 1984 alongside British actress Jane Birkin following her request for a functional everyday handbag. Although Birkin ceased using it due to tendonitis caused by its weight, the bag continues to symbolize luxury. Hermès has taken steps to address ethical concerns regarding the sourcing of exotic skins used in Birkin bags.
In addition to the Kelly and Birkin models, Hermès offers other distinguished handbags such as the bolide—a dome-shaped carryall recognized as the first handbag equipped with a zipper—available in both structured and soft leathers like epsom and clemence. The evelyne is another well-known option: an affordable saddle-style crossbody bag featuring a fabric strap and a subtle perforated "H" logo; it comes in four sizes (TPM 16 cm through TGM 40 cm) typically crafted from supple leathers such as clemence.
Controversy
In 2021, the Farm Transparency Project published videos from three crocodile farms in Australia owned by Hermès, exposing conditions such as confined cages, bare concrete flooring, and methods of slaughter including stabbing and electrocution.
Perfumery
Since 1951, Hermès has crafted a wide range of fragrances catering to men, women, and unisex consumers. Its collection features timeless scents like Calèche (1961) alongside modern favorites such as Terre d'Hermès. The brand’s chief perfumer is Christine Nagel.
Unisex
- Eau de Hermes, 1951
- Voyage de Hermes (available as eau de toilette and parfum), 2016
- Cabriole (designed for children), 2022
Crystal lighting and glass
Hermès Group encompasses Saint-Louis, recognized as the oldest crystal glassmaker globally, established in 1586. Saint-Louis draws its artistic inspiration from prominent decorative styles of the 19th and 20th centuries, including the Restoration era, Napoléon III, Art Nouveau, and Art Déco. It joined the Hermès Group Métiers in 1989.
The Hermès Foundation
Founded in 2008 and led by artistic director Pierre-Alexis Dumas with Catherine Tsekenis as director, the Hermès Foundation champions creativity and artisanal craftsmanship.
In 2010, it introduced the Emile Hermès Prize awarded every two years to honor innovative design efforts. The 2014 recipients included Johan Brunel and Samuel Misslen for "Ventilated Capsule," Antoine Lesur and Marc Venot for "Hut," and Paul Tubiana for "Leon." The Foundation also backs cultural projects such as the "New Settings" exhibition (2012), shows at the Palais de Tokyo (2013), and committed a three-year support program to the Cité internationale of Aubusson tapestry (2014).
It oversees contemporary art venues like La Verrière in Brussels, Le Forum in Tokyo, and Atelier Hermès in Seoul, thereby broadening Hermès’ global cultural influence.
As of December 2016, the Hermès family controlled 65.1% of shares in Hermès International S.A. through Émile Hermès SARL and affiliated entities, holding 74.8% of voting power on profit distribution and 77.2% on other resolutions. The luxury conglomerate LVMH owned 20.21% of shares acquired in late 2010, corresponding to 13.08% voting rights; treasury stock accounted for 0.39%, with free float shares at 16.61%. Despite ongoing rumors, LVMH chairman Bernard Arnault consistently denied intentions to acquire Hermès. Some experts, including René Weber from Vontobel Investment Banking, acknowledged Arnault’s assertive approach but doubted a successful takeover bid. Bertrand Puech, head of the principal Hermès family holding company, publicly criticized LVMH’s share accumulation strategy and called for halving their stake.