What did the Hermès CEO say at the shareholder meeting?
On April 20, 2023, at the Salle Pleyel in Paris, France, the French luxury goods group Hermès held its 2023 general meeting of shareholders. This event brought together global investors and Hermès top management to review the achievements of the past year, look forward to the future, and reaffirm the company’s commitment to sustainable development and the uniqueness of its business model.
Important executives such as Axel Dumas, Hermès Global CEO, Henri-Louis Bauer, Co-Chairman of the Board of Directors, and Eric du Halgouet, Executive Vice President of Group Finance attended the shareholders meeting. They shared the following highlights in their speeches.
First of all, Hermes has achieved good growth momentum in the Chinese and American markets, and plans to add and expand stores in an orderly manner. Axel Dumas said that the company has seen satisfactory development in both the Chinese and American markets. He emphasized the group’s long-term strategy in the Chinese market and said that it will gradually expand to new cities in a stable and respectful manner. He also emphasized that this stability provides support for the company’s progress. They do not manage the group on a quarterly basis, but focus on long-term strategic planning.
In 2022, Hermes opened three new stores in China, and renovated and expanded some stores. At present, Hermes has a total of 27 stores in mainland China, and plans to open a boutique in a new city every year in the future to further expand the brand’s influence.
Second, Hermès is confident in the company’s unique business model, which is demonstrated on the back of strong performance. Looking back at the performance of the 2022 fiscal year and the first quarter of the 2023 fiscal year, Hermès’ comprehensive revenue has shown strong growth, and its operating profit margin has also hit a record high in ten years.
Axel Dumas highlighted the company’s focus on building desirable products as a key to its resilience. He singled out Hermès’ success in leather goods, such as R.M.S. luggage, Kelly en Désordre and Haut à Courroies Rock handbags.
At the same time, Hermes has also attached great importance to employee rewards and sustainable supply chain management. The company insists on producing products in-house and in exclusive workshops, paying attention to the traceability and controllability of products. In addition, Hermès has also adopted a number of sustainable development measures, such as using renewable, recyclable and recyclable materials to make packaging boxes and bags, and is committed to achieving the consistency of emission reduction goals and scientific target initiatives.
Finally, Hermès will continue to invest in increasing production capacity, and plans to build a new leather workshop in France, which is expected to start production in 2027. This initiative aims to meet the growing demand and provide employment opportunities for more artisans.
