Numbers

€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]
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71%

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]
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~$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]
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70%+

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]
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$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]
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2 + 3 years

Two years to become an Hermès artisan; another three before touching a Birkin or Kelly

[Acquired Hermès] · as of 2024