Hermès International reported revenue of €8.0 billion ($9.05 billion) for the first half of 2025, up 7 percent year-over-year (8 percent at constant exchange rates), as the Paris-based luxury house continued to capitalize on resilient demand for its leather goods and artisanal savoir-faire. While macroeconomic and currency headwinds tempered overall growth, the company underscored the “strength of the Hermès model” and its ability to sustain high margins across regions and métiers.
Recurring operating income reached €3.3 billion, a 6 percent increase year-over-year, representing a robust margin of 41.4 percent of sales, while net profit (group share) came in at €2.2 billion (or €2.5 billion excluding exceptional tax contributions in France).
Category Breakdown, Regional Performance
Hermès‘ Leather Goods & Saddlery division led with a 12 percent increase, driven by demand for classics and new designs such as the Faubourg Express, Médor, and Bolide Messenger. The company confirmed that it is expanding production with a new Charente workshop opening in September and additional facilities planned through 2028, presumably in further of a larger effort to meet enduring demand.
Ready-to-Wear & Accessories rose 6 percent, while Silk & Textiles added 4 percent. Perfume & Beauty declined 4 percent due to last year’s blockbuster launches, though new entries like Terre d’Hermès Eau de Parfum Intense and Rouge Brillant Silky lipstick provided momentum. Watches fell 8 percent, despite the popularity of the H08 and Arceau Le temps voyageur, whereas Jewelry & Homeware posted a 10 percent increase.
Hermès reported broad-based growth across all regions in the first half of 2025. Asia (excluding Japan) rose 3 percent, supported by local client loyalty and recent store renovations in Macao and Bangkok. Japan surged 16 percent, while the Americas advanced 12 percent, driven by double-digit U.S. growth and creative activations like Mystery at the Grooms’ in New York. Europe (excluding France) gained 13 percent, bolstered by tourism and local demand, with France up 9 percent thanks to events like the Saut Hermès. The Middle East was the standout, climbing 17 percent.
Competitive Landscape: Outpacing Rivals
Hermès’ performance stands in sharp contrast to its peers. LVMH, the world’s largest luxury group, posted a 2 percent decline in Q1 2025 revenue (3 percent on an organic basis), citing macroeconomic turbulence and softer demand in Fashion & Leather Goods. Kering continues to face challenges stabilizing Gucci, which posted single-digit revenue declines amid a creative transition.
In comparison, Hermès’ 8 percent growth at constant exchange rates highlights the strength of its ultra-luxury positioning. The brand’s tightly controlled distribution and unwavering focus on heritage craftsmanship shield it from the volatility impacting more aspirational segments, a challenge that LVMH’s CFO, Cécile Cabanis, has acknowledged as a broader industry issue.
Leather goods remain the core growth driver for Hermès, outpacing Louis Vuitton and Dior in relative terms. The house’s commitment to scarcity, vertical integration, and rigorous quality control not only supports premium pricing and brand exclusivity but also protects it from reputational risks tied to labor or supply chain controversies. By keeping production artisanal and concentrated in French workshops, Hermès ensures every product, whether a Birkin bag or silk scarf, meets uncompromising standards, reinforcing its resilience and desirability among ultra-high-net-worth clients.
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