The heirs of Hermès are preparing for a record-breaking payout. The family behind the French fashion powerhouse Hermès International is set to receive over $5 billion in dividends. This follows four consecutive years of record profits, as reported by Bloomberg.
Hermès, known for its high-end leather handbags and popular silk scarves, has thrived during the pandemic-era luxury boom. While competitors face challenges, Hermès continues to excel. About 100 family heirs control over two-thirds of the company’s shares.
Last year, shareholders enjoyed a record dividend of $28 per share, including a special payout of $11. If approved at the upcoming shareholder meeting in April, this year’s payout could exceed last year’s $27 per share. It would also be double the amount paid in 2022.
While companies like LVMH and Kering have seen revenue declines, Hermès reported a surge in fourth-quarter earnings. Its stock price has tripled since 2021, briefly pushing its market value to $313 billion. Additionally, Hermès announced a $4,691 bonus for all employees.
Over the last four years, the family’s total payout has reached approximately $5.3 billion. Even after distributing $2.7 billion to shareholders last year, Hermès had about $12.5 billion in cash at the end of December.
With an estimated fortune of $213.8 billion, the Hermès family remains the wealthiest in Europe. However, Bernard Arnault, founder of LVMH, is still France’s richest person, with a net worth of $196.2 billion. This dividend payout comes over a decade after the Hermès family successfully fended off a takeover attempt by Arnault.
When asked about potential acquisitions, Hermès CEO Axel Dumas said it wasn’t a priority. He acknowledged their expertise in Hermès but expressed uncertainty about managing another brand.
