Increased production presence in France. Employees increase at home. But costs have increased too, and for this they will need to raise product tags in the stores. On March 20, the presentation of the final Hermès financial statements was a riot of + signs: the brand was able to confirm a turnover in 2019 of about 6 billion, that is +10% on an annual basis.
The maison has also updated the public on the ongoing reshoring program, that is, on the plan for the opening of leather goods factories in the Hexagon area, which has already seen the growth of the brand’s production sites and is going to witness new openings between now and 2020. In 2018 there were over 800 new recruits, of which 500 in France. While in 2014 the work force of Hermès was 11,700 employees, today the total has reached 14,200, of which 8,800 in Paris and its surroundings.
As reported by the Financial Times, Axel Dumas, CEO of Hermès, acknowledged that the increase in the number of employees and the shift of the center of gravity in France, to which is added the increase in raw materials, in the last year, has resulted in the overall growth in production costs. Too much. The brand, to compensate for the data, will proceed to retouch price tags by 3%. Coming back to France will be paid by customers.