Hermès
Numbers
What the show said, with receipts
Every figure the hosts put on the record for Hermès, with its source and the date it was captured. Hermès does not file public audited statements, so these are the numbers on record.
Freshness
0
Current (≤6 mo)
0
Recent (≤18 mo)
6
Older
Freshness is measured from each figure’s capture date, not from the episode date. An older figure is not wrong; it is a figure that has had time to move.
Reported figures
Annual revenue
3 yr€14B
last twelve months; 15-20% annual growth sustained across the decade
[Acquired Hermès + Hermès SA annual report] · as of 2024
- David:The last 12 months is €14 billion. €6 billion of that is going to be handcrafted items, where one artisan makes one item at a time, and they're sold around the world.[Acquired Hermès, ch. The current business]
Gross margin
3 yr71%
44% operating margin — 'a software business that doesn't need any R&D'
[Acquired Hermès + Hermès SA annual report] · as of 2024
- Ben:The last 12 months, it did $14 billion in revenue, $5.7 billion in operating income. They have a 71% gross margin and a 44% operating margin. It's a software business that doesn't need any R&D.[Acquired Hermès, ch. The numbers]
Market cap
3 yr~$230B
LVMH started buying below $10B in early 2000s — ~23x from that entry
[Acquired Hermès + public market data] · as of 2024
- David:Today, Hermes is a $230 billion market cap company, and he starts buying at below $10 billion.[Acquired Hermès, ch. The LVMH raid]
Family ownership
3 yr70%+
Sixth generation of family leadership; listed only 19% in 1993
[Acquired Hermès] · as of 2024
- David:Collectively, when the dust settles, the family has sold 19% of Hermes to the public. They still own 81%. Now, the public float grows a little bit over the years... More or less still, 70% plus family owned and controlled.[Acquired Hermès, ch. The IPO]
Birkin bag price range
3 yr$10K–$100K+
Veblen good: higher price increases demand. Five-year waitlists for top models.
[Acquired Hermès] · as of 2024
- Ben:These $10,000-$100,000 retail handbags, depending on the type of exotic leather and everything, and the scarcity are referred to as a category of Veblen goods. This is essentially the opposite of everything you learned in econ 101.[Acquired Hermès, ch. The Birkin]
Artisan training time
3 yr2 + 3 years
Two years to become an Hermès artisan; another three before touching a Birkin or Kelly
[Acquired Hermès] · as of 2024