While designer brands have struggled over the past few years, partly due to weaker Chinese consumer demand and Gen Z shoppers not finding value in material things, fashion house Hermès reported positive 2024 results—and they are paying it forward.
The designer brand has awarded each of its 25,000 employees a bonus of nearly $5,000, almost $118 million in total, which Hermès forked out. Last week, the Paris-based luxury retailer stated that its revenue for FY24 equaled €15.2 billion ($15.9 billion), up 15% on a constant exchange rate.
Now, their heritage brand is making good on its promise to share the company’s success with its staff, with employees awarded a €4,500 bonus ($4,925) each. While the near-$5,000 bonus won’t get staff anywhere near the cost of Hermès’ famous Birkin or Kelly bags, it is a welcome surprise and represents a decent amount for France’s cost of living.
Executive chairman Axel Dumas said on a recent call: “Faithful to its responsible employer commitment and the will to share the fruit of its growth with those who contribute every day to it, Hermès will be distributing at the beginning of the year a bonus of €4,500 to all its employees worldwide in 2024.” The executive also reassured both investors and employees that Hermès will stay the course preserving its “fundamental values of quality, creativity and savoir-faire.”
About Hermès
The French luxury designer, founded in 1837, specializes in handbags, scarves, ties, and more—but the brand is particularly well known for its Birkin and Kelly bags. These bags come in a range of sizes and materials and are named after some iconic women: actress and singer Jane Birkin and Princess of Monaco Grace Kelly.
Quick research on the brand’s website reveals that the strap alone on these bags, which can be swapped on and off, costs roughly $1,300. This can put quite a dent in the bank accounts of any employee who may also want to buy into the luxury they sell. Resale and specialist sites list the smallest Kelly bag as starting at a whopping $8,800, while the larger Birkin bags, designed in classic leather, can be swooped up from around $20,000.
How the Bonus Helps Employees
For employees who live in France, which make up the majority of the fashion designer’s workforce, the bonus is a significant boost toward the cost of living expenses. According to HousingAnywhere, a European renting platform, rent in Paris (where Hermès’ headquarters are based) is around €1,834 ($1,921) for an unfurnished apartment with utilities included. For employees in any of the brand’s 23 production facilities across France, their rent, on average, is likely to sit around the €900 mark ($943) for a one-bed apartment.
So, while the retailer’s bonus may not stretch far toward getting an employee closer to owning a coveted Birkin bag, the money is likely to help toward their day-to-day living expenses.
Hermès added that in 2024, the brand paid out a total of €350 million ($367 million) in exceptional bonuses, profit sharing, and incentives as part of its “social model.”
On top of employee bonuses, the brand has also reaffirmed its dedication to DEI, which is a distinct divergence from the shift currently happening across the pond. Highlighting Hermès’ commitment to DEI, the company reported that 48% of its top 100 managers were women, and 7.1% of staff were registered as having disabilities.
Furthermore, the brand prioritizes sustainability, with Hermès reducing emissions by 64% compared to 2018. Dumas added, “Nature is a source of exceptional material and lies at the heart of our model.”
