The family that controls luxury fashion empire Hermès International is set to collect over $5 billion in dividends while each employee will walk home with a $4,850 bonus following four consecutive years of record-breaking earnings — outperforming competitors amid a broader industrywide slowdown.
Roughly 100 heirs who collectively control more than two-thirds of Hermès shares have seen their payouts rise sharply, with this year’s dividend reaching an all-time high.
In 2024, the personal luxury market contracted by 2%, and only a third of luxury brands managed to grow.
Yet, Hermès — which famously forces customers to wait months and even years to buy its stratospherically priced handbags — defied the trend, reporting a 15% rise in revenue at constant exchange rates, reaching nearly $16 billion.
While its growth slowed to 13% in the second quarter and 11% in the third, fourth-quarter revenues rebounded with an 18% increase to $4.2 billion.
In contrast, LVMH posted a 2% decline year-over-year, and Kering saw a sharp 12% drop in the fourth quarter, capping a difficult year.
The family’s wealth is estimated at $213.8 billion, largely tied to their holdings in Hermès, whose stock has more than tripled in value since early 2021.
Hermès International, founded in 1837 by Thierry Hermès, has remained under the stewardship of the Hermès-Dumas family for six generations.
Axel Dumas, who has served as CEO since 2014, is the son of Olivier Dumas and the nephew of Jean-Louis Dumas, a former CEO who significantly expanded Hermès’ global presence.
His cousin, Pierre-Alexis Dumas, is artistic director responsible for overseeing the creative direction of Hermès.
The brand benefited from surging demand during the pandemic and has maintained its momentum, briefly reaching a market capitalization of $313 billion after releasing its 2024 earnings on February 14.
Despite being the wealthiest family in Europe, the Hermès heirs trail Bernard Arnault, the founder of LVMH, in individual net worth.
Arnault, 75, remains the richest person in France with a fortune of $186 billion.
The dividends come more than a decade after the Hermès family successfully fended off an attempted takeover by Arnault, who had quietly amassed a significant stake in the company through LVMH.
In recent years, the family has begun diversifying its wealth beyond luxury through its investment vehicle, Krefeld Invest.
Hermes has proposed a dividend of $28 per share for last year, its highest ever, including a special payout of $11 per share.
This increase, pending approval at the April 30 shareholders’ meeting, surpasses the previous year’s dividend of $27 per share and is double the amount distributed for 2022.
The company had historically issued smaller special dividends of $5 per share, but surging profits in recent years have resulted in higher payouts for both shareholders and employees.
Employees are also set to receive a $4,850 bonus in recognition of the company’s strong performance.
Over the past four years, total dividend payments to family members will amount to approximately $5.5 billion.
Even after distributing $2.8 billion to shareholders last year, Hermes maintained a net cash position of $13 billion at the end of December.
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