Hermès opens two production sites in France after posting record revenue and profits in 2016

Paris, 7 June 2017 (AFP) - On Wednesday, luxury group Hermès announced the creation of 220 new jobs in France, thanks to the opening of two leather goods production sites in Normandy and Nouvelle Aquitaine.

The French leather goods manufacturer, whose worldwide sales are growing strongly, will open on Friday a glove-making and leather goods production facility in Saint-Junien, in the Nouvelle Aquitaine region.

The Saint-Junien glove-making factory, acquired by Hermès in 1998, is in fact being relocated to new facilities, in "a former wool treatment plant extending over 1,500 m2" which has been entirely renovated, and will also host a manufacturing workshop for small leather goods. The new facility, once completed, "will employ nearly 120 artisans."

On 13th June, Hermès will then open a new, 5,700 m2 leather goods production site in Val-de-Reuil, Normandy. Once completed, this second facility will employ 250 artisans.

In early February, the luxury group led by Axel Dumas reported record annual sales worth €5.2 billion (for a 7.4% organic growth year-on-year), driven by its core business, leather goods, which accounted for half of its total revenue. Last year, Hermès’ net income was €1.1 billion, also a record.

Alongside the brand's signature handbags, the Birkin and Kelly, the Constance, Halzan and Lindy models were also highly successful. The entire Hermès leather goods range is now manufactured in France.

The group, which had a total worldwide staff of 12,834 as of end December 2016 (7,881 of them based in France), hired 600 new employees last year, chiefly in manufacturing and sales, and has created 2,400 new jobs in France alone in the last five years, according to Axel Dumas.

Hermès generates 86% of its revenue outside France, chiefly in Asia, which accounts for nearly half of the group's business. It is the third-largest French luxury group and the twelfth worldwide by revenue, according to a ranking by consulting firm Deloitte.