[Trending News] Luxury brand gives $ 4.9 thousand to employees, but bonuses do not buy or bag that they make

A luxury brand Hermès is disbursing nearly $ 118 million in bonuses for its 25,000 employees after reporting strong holiday results to 2024. Last week, the Paris -based retailer said his revenue for the 2024 fiscal year totaled 15.2 billion euros ($ 15.9 billion), an increase of 15% at a constant exchange rate. And the company is fulfilling its promise to share its success with employees, confirming that they will receive a bonus of 4,700 euros ($ 4,925) each.

“True to your responsible employer commitment and to share the fruit of its growth with those who contribute every day to this, Hermès will be distributing at the beginning of the year a bonus of 4,500 euros to all its employees worldwide in 2024, ”said the executive chairman of HermesAxel Dumas. But while the nearly $ 5,000 bonus is welcome to employees, it won't let them even buy the most famous items created by the brand.

Employee bonuses buy a luxury bag from Hermès?

Hermès is particularly known for its Birkin and Kelly bags – The name comes from actress Grace Kelly – who come in a variety of sizes and materials. A quick search on Hermès website reveals that only one handle, to be changed in the bags, costs $ 1,284, placing a lot of damage to employees of employees who may want to participate in the luxury they sell.

The brand, which has been passed from generation to generation in Hermès and Dumas families, does not display its most coveted items for sale on its site. However, resale e-commerce and experts list the smallest Kelly bag starts from $ 8,800. Larger Birkin bags – named after actress and singer Jane Birkin – in classic leather can be purchased from US$ 20 mil.

However, the employee bonuses It is a great benefit for those who live in France, who make up most of Hermès's workforce. In fact, for employees who work at any of Hermès's 23 production facilities in France, their rent, on average, will probably be around 900 euros ($ 943) for a one -room apartment. So while payment may not go far toward staff on the stairs for a Birkin, it is likely to go somehow toward their daily life costs.

The brand added that, totaling in 2024, it paid 350 million euros (US $ 367 million) in exceptional bonuses, profit sharing and incentives as part of its “social model”. In addition, Hermès reaffirmed its commitment to Dei – acronym for diversity, equity and inclusion – a significant change in relation to what is happening across the ocean.

For example, Hermès reported that 48% of its top 100 managers in the company are women and 7.1% of employees were registered as having disabilities. In addition, the brand reduced its emissions by 64% compared to 2018. “Nature is a source of exceptional material and is in the heart of our model,” said Dumas.

Perspective on the luxury sector

In recent years, designer brands have struggled to acclimate the new reality of weaker demand for Chinese consumer and generation Z buyers that do not identify as much value in materialistic goods. On the contrary, Dumas reported: “In 2024, all regions showed solid performance. France +13% and Europe +19% recorded strong progressions sustained by robust demand. Japan +23% benefited sustained and regular growth, carried by the loyalty of its local customers. ”

Asia also had a “remarkable progression”, with an increase of 7%, Dumas added, and while the Middle East still represents only 4%of its revenue, it saw a growth of 110%.

The Fashion House – established in the 1830s – is preparing for the long run. Dumas said his success in 2024 was courtesy of “divisions supported by artistic directors, a very demanding quality, preservation and transmission of our know-how (knowledge).” “Old and new customers were present worldwide. In 2024, the house kept its course by keeping its balances attached more than ever respecting its values, ”he added.

“We continue strategic investments in our production capacity to ensure our supply chain and prepare the future, as well as in our network worldwide, to keep up with the long -term selling dynamism of the house,” said the executive president of luxury brand.

*This story was originally published in Fortune.com (c.2024 Fortune Media IP Limited) e distribuída por The New York Times Licensing Group. The content was translated with the aid of artificial intelligence tools and revised by our editorial team. Learn more in our AI policy.

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