Published: 2023-07-04
Company History
Hermès
Study the financial data for Hermès.
Hermès, a family-owned business whose origins lie in saddlery and fine leatherwork, now makes its money in luxury fashion sold in its own boutiques. In its early days, the company became world famous for its equestrian accessories. In the fashion world, Hermès is known for the Kelly and Birkin bags, as well as the elegant silk scarf, which has been produced with more than 2,000 different motifs.
| Founded | 1837 |
| Founder | Thierry Hermès |
| Headquarters | 24 Rue du Faubourg Saint-Honoré - 75008 Paris, France |
| Key people |
Axel Dumas (Executive Chairman) Henri-Louis Bauer (Executive Manager and Chairman Emile Hermès SARL) Éric de Seynes (Chairman, Supervisory Board) Pierre-Alexis Dumas (Artistic Executive Vice President) |
| Products |
Clothing and accessories Perfume Watches & Jewellery Shoes Stationery Home accessories |
| Areas | Leather goods, silk and cashmere scarves, ties, women's and men's prêt-à-porter, perfume, watches, shoes, gloves, stationery, enamel, jewelry, porcelain, interior decoration. |
| Website | Hermès.com and www.Hermès-international.com |
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1837: Opening of the first store
Born in Krefeld in 1801 to a German mother and French father, Thierry Hermès opened his first shop in Paris. As an excellent leatherworker, he concentrates on high-quality horse harnesses. The high quality of his products brought him not only customers from Parisian society, but also nobles and kings from all over Europe, even Napoleon III. He receives awards for his work at the Paris World Fair in 1855 and 1867.
First Hermès store -
1878: Death Thierry Hermès
The company's founder Thierry Hermès dies at the age of 77.
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1880: Charles-Emile Hermès takes over the business
Together with Charles-Emile Hermès, Thierry Hermès, the son of Charles-Emile Hermès, takes over the company and moves the headquarters within Paris to 24 rue du Faubourg Saint-Honore, where the company is still located today. There, he continues the art of saddlery and supplies markets in Europe, Russia, North Africa, Asia and America.
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1900: Sale of the first bags
This year, Hermès launches the Haut à Courroies, its first bag. Known by the acronym HAC, the bag owes its name to its long handles. It was specifically designed to carry a rider's saddle. Equestrian accessories continued to be popular.
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1902: Charles-Emile's withdrawal from the business
When Charles-Emile Hermès retires, his sons Adolphe and Emile-Maurice Hermès take over the company. Under their leadership, the company is renamed Hermès Frères.
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1914: Supply of the Tsar of Russia
Emile-Maurice begins to supply the Russian Tsar with exclusive saddles. The entrepreneur also acquired the exclusive right to use the zipper on leather goods and clothing, making him the first to introduce it in France.
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1918: Golf jacket for the Prince of Wales
This year, Hermès is making a leather golf jacket for the Prince of Wales, Edward.
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1919: Falling sales figures
Following a decline in sales of harnesses and accessories, Adolphe Hermès retires from the business. His brother Emile-Maurice takes over his share.
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1922: The first leather handbag comes on the market
The company's first leather handbag is equipped with the new patented zipper. The small version of the Haut a Courroies is designed by Emile-Maurice himself at the request of his wife. That same year, Hermès launches its first leather belt, some of which still bear the capital "H" as a buckle.
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1923: Patenting of a zipper
With the advent of the automobile and the consequent decline of the harness and saddlery business, Emile-Maurice changes his business model and patents a new type of zipper, known as the Hermès fermeture. This is the first of several clothing lines.
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1924: Expansion of business to the United States
Hermès enters the American market with the opening of two stores in French seaside resorts. In the 1920s, Emile-Maurice brought his three sons-in-law (Robert Dumas, Jean-René Guerrand and Francis Puech) into the company as partners.
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1925: Expansion of the product range
From this year on, the golf jacket is also available as ready-to-wear. Over the next three years, jewelry, watches and sandals are added.
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1928: Creation of the first pocket watch
The first pocket watch is created in collaboration with the Swiss watchmaker Movado. In the years that followed, other models were created with various watchmakers before the Swiss watchmaker Universal Genève became the company's exclusive watch designer in the mid-1930s. This collaboration resulted in various chronographs (in 18-carat gold or stainless steel) and Art Deco ladies' wristwatches in 18-carat gold, stainless steel or platinum with the Hermès or Hermès Universal Genève name on the dial.
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1929: Presentation of the first couture collection
For the first time, the company presents a couture collection to be presented in Paris this year.
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1930: Sale of products at Neiman Marcus
Hermès begins selling its products in the U.S. at Neiman Marcus.
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1937: The iconic silk scarf is born
This year, the iconic silk scarf sees the light of day. Hermès controls every step of the production process. Today, every 20 seconds or so, a silk scarf is sold somewhere in the world, available in more than a thousand patterns - and twelve new ones are added every year. The company continues to expand its product range, producing riding gloves, belts and sportswear for men and women, as well as travel bags for the new target group of car drivers.
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1938: Expansion of the collection
The classic collection is complemented by the Chaine d'ancre bracelet, a riding jacket and a matching outfit. At the same time, the house's designers draw inspiration from books, paintings and art objects.
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1949: The first silk ties are created
After some gentlemen in Cannes visit the nearby Hermès boutique to buy ties for the casino, the company starts its own production of silk ties.
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1951: Company succession by the sons-in-law
His two sons-in-law, Robert Dumas-Hermès and Jean-René Guerrand-Hermès, succeed Emile-Maurice on his death, becoming the first non-direct descendants of Thierry Hermès to lead the company. At the same time, Hermès opens its perfume department.
During the decade, the logo of the Le Duc carriage and the signature orange packaging are introduced. -
1951: Launch of the first perfume
Hermès launches its first perfume, the men's fragrance Eau d'Hermès.
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1956: The Kelly bag is a success
Thanks to Grace Kelly, who tried to hide her pregnancy with a Hermès bag, the crocodile Kelly bag made its debut. The Sac a Dépeches bag was first introduced in 1935, but was not a big seller.
Hermès Kelly Bag -
1961: Transfer of the perfume division to a subsidiary company
With the launch of the women's fragrance Calèche, the company transfers its perfume activities to a subsidiary.
Women's fragrance Calèche -
1967: Catherine Karolyi designs the women's fashion
French designer Catherine Karolyi develops the company's womenswear in the following years until 1980. She is also credited with designing the famous H-buckle.
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1970: The men's fragrance Equipage is released
Hermès launches another fragrance, Equipage, for men. In the following years, the trend moves towards unisex fragrances.
Men's fragrance, Equipage -
1972: Hermès presents the first women's gloves
Hermès introduces women's gloves for the first time.
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1973: The world of Hermès
The magazine "Die Welt von Hermès" is first published in Germany. Two years later, it is published in France and today in more than ten languages around the world.
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1976: Takeover of the branch office John Lobbs
Hermès takes over the Paris branch of the British shoe manufacturer John Lobb and opens other branches. These continue to operate independently of John Lobb's headquarters in London.
The company launches its first men's ready-to-wear line; a women's line is not introduced until the late 1980s. -
1978: Company succession by the great-great-great-grandson
Jean Louis Dumas, great-great-grandson of Thierry Hermès, takes over the company. The company acquires the building adjacent to 24 rue Faubourg Saint-Honore and expands its flagship store. The company opens its first watch factory, La Montre Hermès SA, in Bienne, Switzerland.
Following a decline in sales due to the company's dusty image in the 1970s, Dumas rejuvenates the collections, brings new designers into the company, develops modern advertising campaigns to attract new audiences, and drives the expansion of the boutique network. The new CEO also introduced the company's watch division and modernized traditional techniques with innovative product lines such as python motorcycle jackets and ostrich leather jeans. -
1984: Birkin handbag trend
After actress Jane Birkin swapped her handbag for a Hermès leather bag, the Birkin bag trend was born. The invention of this elegant yet voluminous bag is attributed to a chance meeting between the actress and Jean-Louis Dumas on a flight from Paris to London. Today, the accessory, available from 5,750 euros, is one of the company's best-selling products, along with the Kelly bag.
The Birkin bag -
1987: Hermès celebrates 150th anniversary
The company celebrates its 150th anniversary with a dazzling fireworks display on the Pont Neuf bridge in Paris. The decade is marked by the company's growing influence over its suppliers, which it acquires on a large scale.
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1988: Claude Brouet leads the women's fashion
This year, Claude Brouet, former editor-in-chief of Marie Claire in France, leads a womenswear design team that includes future Bottega Veneta designer Tomas Maier. Véronique Nichanian, formerly a designer at Nino Cerruti, has been in charge of menswear since this year.
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1990: Versatile collection brings rising sales figures
In 1978, when Jean-Louis Dumas took over, the company's turnover was estimated at $50 million; by 1990, it was around $460 million. The collection, which now includes fine porcelain and crystal tableware, numbers some 30,000 pieces.
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1992: Relocation of the leather workshops
The leather workshops move from the 1st floor of 24 rue Faubourg Saint-Honoré to the Paris suburb of Pantin.
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1993: Initial public offering of the company
The company goes public. 80% of the shares remain in family ownership. The silversmith Puiforcat is integrated into the company.
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1995: Acquisition of the Saint-Louis manufactory
The company acquires the Saint-Louis crystal factory. Hermès reduces the number of franchised stores from around 250 to 200, while the number of company-owned stores increases from 60 to 100. The aim of this strategy is to control the products.
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1996: Opening of the first branch in China
The company opens its first branch in Beijing.
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1997: Production of men's shoes
The company begins production of men's shoes. Belgian designer Martin Margiela takes over from Brouet as creative director of women's fashion.
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1999: Participation in Jean-Paul Gaultier
Between 1999 and 2011, on the initiative of Jean-Louis Dumas, Hermès initially held 35% and finally 45% of the shares.
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2000: Worldwide expansion
Under the direction of Jean-Louis Dumas, the company opens a number of boutiques that blend in with the local culture. From 2000, several Maisons Hermès are opened on Madison Avenue, in Ginza in Tokyo (2001) and in Dosan Park in Seoul (2006).
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2002: Start of online business
This year, Hermès launches an e-commerce site in the United States, followed three years later by a presence in France.
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2003: Jean-Paul Gaultier joins the company
After Martin Margiela, Jean-Paul Gaultier joins Hermès as womenswear designer. He makes his debut on the catwalk with the Fall/Winter 2004/2005 collection. In the same year, Patrick Thomas takes over the management of Hermès following the resignation of Jean Louis Dumas.
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2004: Jean-Claude Ellena becomes chief perfumer
Jean-Claude Ellena is appointed head perfumer of the house. Under his direction, several fragrances are created that remain iconic to this day.
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2005: Pierre-Alexis Dumas becomes artistic director
Pierre-Alexis Dumas, son of Jean-Louis Hermès, becomes the sixth generation of the family to head the company.
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2006: Patrick Thomas - first CEO without Hermès family tradition
From 2006 to 2013, Patrick Thomas was the first non-family member to lead the company as CEO. He joined the company as a manager in 1989 and was General Manager and right-hand man to Jean-Louis Dumas from 2003 to 2006. He is credited with the decentralization of the Metiers strategic organization and the global geographic realignment. He also organizes the generation change until Axel Dumas, Jean-Louis' nephew, is appointed Executive Chairman in 2013.
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2007: Further enlargement of the flagship in Paris
The company is once again expanding its flagship store in Paris with the purchase of 28 Rue Faubourg Saint-Honore.
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2008: Creation of the Fondation d'entreprise Hermès foundation
Pierre-Alexis Dumas initiates the creation of the Fondation d'entreprise Hermès, which is particularly active in the fields of creation, know-how transfer, environmental protection and solidarity. The Foundation awards prizes, runs various contemporary art spaces and supports exhibitions by young artists. The Foundation is chaired by Pierre-Alexis Dumas, artistic director of Hermès, and supported by Catherine Tsekenis.
It is currently active in 14 areas: Leather, scarves, ties, menswear, womenswear, fragrances, watches, stationery, shoes, gloves, enamels, crafts, tableware and jewelry. Sales are divided into approximately 30% leather goods, 15% apparel, 12% scarves and 43% other goods. No licenses are granted in order to maintain full control over the products. -
2010: Christophe Lemaire replaces Jean-Paul Gaultier
Jean-Louis Dumas, the long-serving General Manager, dies this year after a long illness.
Christophe Lemaire succeeds Jean-Paul Gaultier as creative director. The latter has previously worked for Lacoste. A haute joaillerie collection is added to the jewelry line for the first time. Created by Pascale Mussard, niece of Jean-Louis Dumas, petit h follows the reverse process of the house's creation. Artisans and designers use unused materials from the Manufacture to create unique objects that are the result of the House's exceptional expertise.
With a turnover of 2.4 billion euros, the company makes a net profit of 422 million euros this year, an increase of 46 percent over the previous year. LVMH announces that it has acquired a 14.2% stake in Hermès International. By the end of the year, the group says it already holds more than 20% of the shares, making it the largest shareholder alongside the Hermès family. The Hermès family considers the acquisition a hostile takeover attempt and publicly calls on Bernard Arnault to withdraw. -
2011: Record sales
The year is the most successful in the company's history to date. Sales rose to 2.84 billion euros and profits to 594.3 million euros. This was due to increased demand in all markets, but especially in China and the USA. In addition, fabrics and wallpapers for home furnishings are launched.
The French stock market regulator allows the Hermès family to transfer its 73 percent stake in the company to a family holding company without having to make the usual public takeover bid for the remaining shares. The holding company initially secures a 50.2% majority stake for 20 years to prevent a takeover. -
2012: Axel Dumas becomes CEO
Axel Dumas is the sixth generation of the family to take the helm of Hermès. He holds this position to date and has overseen the opening of the fifth Maison Hermès in Shanghai (2014) and numerous other boutiques around the world. He began his career at Hermès as auditor of the finance department of Hermès International and later as Commercial Director for France, before being appointed General Manager of the Hermès jewelry division. Other positions within the company include Directeur Général of the entire Hermès leather goods division and, from 2011, Directeur Général des Opérations.
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2013: Profit records and fine
The company expands its Pantin site with the Cité des métiers, a large-scale project consisting of several buildings linked by five themed gardens. A year later, the architects RDAI were awarded the silver Prix de l'Équerre for this project.
The year's turnover is 3.75 billion euros, while profits, at 1.21 billion euros, are significantly higher than in previous years. LVMH was fined 8 million euros for having paid out convertible bonds acquired before 2010 in Hermès shares instead of cash. -
2014: LVMH sells shares
French designer Nadège Vanhee-Cybulski, formerly of Margiela and Céline, succeeds Christophe Lemaire.
Annual sales reach 4.11 billion euros. LVMH announces that it has sold its 23.5% stake in Hermès to its own shareholders for a profit of 2.4 billion euros. Only 8.5% of the shares remain in Bernard Arnault's private holding company, Groupe Arnault. -
2015: Cooperation with Apple
Hermès enters into an innovative partnership with Apple to launch the Apple Watch Hermès.
The company announces a 9.7% increase in sales to more than 4 billion euros. While sales in Europe and Japan grew by 7% each, they increase by 10% in the US and even more in Asia. -
2016: Influence by LVMH
The Hermès family, as shareholders of Émile Hermès SARL, and its family members hold a total of 65.1% of the share capital of Hermès International S.A. and a total of 74.8% of the voting rights for the distribution of net income and 77.2% for all other matters. In parallel, LVMH holds 20.21% of the shares and 13.08% of the voting rights, as well as 0.39% of the treasury shares and 16.61% of the free float.
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2017: Handbag with record sales
A matte white "Himalayan" Birkin 30 bag changed hands for £253,700 at a Christie's auction in Hong Kong. The three-year-old bag contains 176.3 grams of 18-karat white gold and 10.23 carats of diamonds.
As part of its digital strategy, the Hermès.com website has been redesigned and its omnichannel strategy expanded. Axl Dumas is leading Hermès into the new age of the connected customer. -
2018: Inclusion in the CAC 40
Hermès International is included in the CAC 40, which is seen internally as a clear affirmation of the family shareholder structure, which also places a strong emphasis on creativity and quality production in France. The opening of the Dubai Mall boutique is the largest ever for the company.
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2019: One of the most successful brands in the world
The company opens its first boutique in Warsaw, Poland. Forbes ranks Hermès as the 33rd most valuable brand in the world.
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2020: Creation of the Beauty division
With its first collection, Rouge Hermès, which highlights the beauty of the lips, the company presents its 16th product line. It was the result of five years of research and development.
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2021: Opening of the École Hermès des Savoir-Faire
The company opens its 19th leather workshop in Gironde. Hermès also creates the École Hermès des Savoir-Faire (CFA), where apprentices can obtain the national diploma in leather working (CAP Maroquinerie). The Farm Transparency Project releases a video this year showing the cruel living conditions of crocodiles on Australian farms.
Hermès ranks 7th in the WIPO World Intellectual Property Indicators with 68 design registrations under the Hague system. This means that the company registered more than twice as many designs in 2020 as in 2019 (15th place with 27 design registrations). -
2022: Axel Dumas is the second richest Frenchman
Axel Dumas is the second richest Frenchman with a fortune of 86 billion euros.
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2023: Damages after copyright infringement
Hermès wins MetaBirkins NFTs case against Mason Rothschild. The New York artist is ordered to pay $133,000 by a New York court for copyright infringement using digital images of a Birkin bag.