Hermès and Rolex donate less despite record sales in Korea

Industry

Published: 10 Apr. 2024, 18:20 Updated: 11 Apr. 2024, 13:11

Hermès and Rolex donate less despite record sales in Korea

A person walks by a Hermes store in Seoul. [YONHAP]

Luxury fashion brands like Hermès and Rolex made more profit in Korea last year, but donated less.

Hermès Korea generated 797.2 billion won ($591 million) in sales in Korea in 2023, up 22.6 percent compared to the previous year, according to its regulatory filing on Tuesday.

Its operating profit rose 12 percent to 235.7 billion won in the same period.

The company's sales growth came after it upped the prices of its major products, including bags and clothes, by up to 10 percent. Its dividends paid to company headquarters doubled to 14.5 million won in the same period.

But its donation to the country totaled 553.2 million won last year, compared to 560 million won in 2022.

Hermès' donations are huge compared to other luxury brands.

Rolex Korea donated only 1 million won in Korea last year, compared to 400 million won in 2022. It generated 294.4 million won in sales in the domestic market.

Christian Dior Couture Korea, the domestic sales subsidiary of Dior, logged 1.05 trillion won in sales last year, up 12.5 percent on year.

Its donations only totaled 19.2 million won.

Louis Vuitton made no donations at all in Korea.

It generated 1.65 trillion won in sales, down 2.4 percent on year. Operating profit stood at 286.7. billion won.

Louis Vuitton Korea paid out 380 billion won in dividends last year, up 70 percent on year.

BY HAN YOUNG-HYE, SARAH CHEA [chea.sarah@joongang.co.kr]