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The French luxury house surpassed €16 billion in sales despite softer Chinese demand and a wider luxury market slowdown.
Financials
15 May, 2026
Table of contents
Hermes International SA announced its FY 2025 financial results on 12 February 2026, reporting revenue growth of 9% with constant exchange rates. It went over the €16 billion threshold for the first time. Recurring operating income increased 7% year-on-year to €6,6 billion, while operating profitability improved to 41% of sales despite less Chinese luxury demand and significant currency headwinds.
The performance reinforced the position of Hermes’ as one of the most resilient players in global luxury during a year that was signified with slowing aspirational demand, weaker traffic trends in Greater China, and increasing promotional pressure across the sector. While several global luxury groups experienced moderating leather goods growth and rising inventory concerns throughout 2025, Hermes continued to benefit from its disciplined distribution strategy, vertically integrated artisanal model, and sustained full-price demand across its core categories. 4th-quarter sales increased 10% at constant exchange rates, matching the previous quarter’s pace despite a particularly high comparison base.
Revenue surpassed €16 billion for the first time.
Recurring operating income increased 7% to €6,6 billion.
Operating margin improved to 41% despite currency headwinds.
Japan and the Americas became the strongest-performing regions.
Asia remained resilient despite softer demand trends in China.
Hermes continues to outperform the wider luxury market through well-disciplined supply and distribution management.
The 2025 performance of Hermes further leveraged the divergence between ultra-luxury houses built on craftsmanship, scarcity, and long-term brand equity. The broader luxury players are more exposed to cyclical consumer demand and volume-driven growth strategies.
Revenue reached €16 billion in 2025, compared with €15,2 billion in 2024 and €13,4 billion in 2023. Over the past four years, Hermes has nearly doubled its revenue, from approximately €9 billion in 2021 to €16 billion in 2025. Recurring operating income followed a similarly strong trajectory, increasing from €3,5 billion in 2021 to €6,6 billion in 2025, showcasing the maison’s ability to sustain industry-leading profitability even during periods of slowing sector growth.
| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|
| Revenue | €16 billion (+5,5%) | €15,17 billion (+13,0%) | €13,42 billion (+15,7%) | €11,60 billion (+29,2%) | €8,98 billion |
| Recurring Operating Income | €6,6 billion (+7,0%) | €6,15 billion (+8,8%) | €5,65 billion (+20,3%) | €4,69 billion (+33,1%) | €3,53 billion |
The results are standing out even more when compared with the wider luxury sector’s 2025 performance. Kering Group reported revenue of €14,67 billion, declining 14,6% year-on-year amid continued weakness at Gucci and softer demand across Asia-Pacific markets. Meanwhile, LVMH Moët Hennessy - Louis Vuitton generated €80,8 billion in revenue, decreased by 4,6%, with profit from operations dropped by 9,56% to €17,1 billion as Fashion & Leather Goods growth moderated and the group faced weaker tourism and less Chinese demand.
On the contrary, Hermes continued outperforming most of the luxury sector through a strategic model with controlled supply, limited wholesale exposure and really strong pricing discipline. While many known brands expanded aggressively during the post-pandemic luxury surge, {Hermes}} maintained a highly selective approach to production, distribution and customer acquisition, allowing it to preserve both exclusivity and full-price sell-through even when the broader luxury demand normalised.
This strategic positioning increasingly makes {Hermes}} stand out from competitors, facing higher inventory risk and greater dependence on trend-driven product cycles. Throughout 2025, Hermes continued strengthening desirability through sustained demand for its leather goods collections, along with new product launches such as So Médor and Seau Mousqueton. The Spring-Summer 2026 ready-to-wear collections further showed momentum across fashion and accessories.
Regional revenue performance in 2025 reflected a progressively more diversified luxury landscape, with Hermes continuing to benefit from balanced geographic exposure despite softer growth in Greater China and broader Asia-Pacific markets.
Europe remained one of the brand’s strongest-performing regions, with total European revenue reaching €3,9 billion in 2025, up by 9,6% year-on-year. Europe excluding France increased 10%, while France grew 8,9%. This is supported by resilient local demand, strong tourist activity and continued full-price performance across flagship retail locations.
Japan continued delivering standout performance, with revenue hiking 10,7% to €1,6 billion. The region remained one of Hermes’ strongest-performing markets throughout the year as it is assisted by high local brand loyalty, resilient domestic consumption, and sustained demand among affluent luxury consumers.
Across Asia-Pacific excluding Japan, revenue reached €6,7 billion, increased by 0,8% year-on-year. Even though the growth has moderated significantly compared with previous years due to softer traffic trends in Greater China, Hermes maintained positive regional performance through selective retail investments and continued demand from ultra-high-net-worth consumers.
The Americas generated €3,1 billion in revenue, up 7,3% year-on-year and confirming the resilience of high-end luxury spending in the United States despite broader market normalisation. Hermes continued strengthening its presence in the region through selective retail expansion, including new stores in Scottsdale and Nashville. Meanwhile, the “Other” region, primarily driven by the Middle East, grew 11,2%, spotlighting the increasing importance of Gulf luxury consumers within the global market.
| Region | FY 2025 Revenue | YoY Growth |
|---|---|---|
| France | €1,6 billion | +8,9% |
| Europe excl. France | €2,4 billion | +10,0% |
| Total Europe | €3,9 billion | +9,6% |
| Japan | €1,6 billion | +10,7% |
| Asia-Pacific excl. Japan | €6,7 billion | +0,8% |
| Total Asia | €8,3 billion | +2,6% |
| Americas | €3,1 billion | +7,3% |
| Other (Middle East) | €697 million | +11,2% |
| Total Revenue | €16 billion | +5,5% |
Beyond financial performance, Hermes continued to leverage the foundations of its vertically integrated artisanal model through sustained investment in manufacturing capacity, training and domestic production infrastructure.
The maison inaugurated its 24th leather goods workshop in L’Isle-d’Espagnac during 2025 and confirmed additional workshop openings planned through 2028 across Gironde, Ardennes, and Calvados. Hermes also announced a future production site in Les Andelys scheduled for 2030, reinforcing its long-term commitment to expanding French manufacturing capacity.
The group boosted its workforce by more than 1.300 employees during the year, including 800 in France, while further expanding its École des savoir-faire training ecosystem through the opening of two additional schools dedicated to craftsmanship transmission and artisanal education.
These investments continue to assist Hermes’ long-term operational resilience at a time when several luxury groups are increasingly prioritising cost optimisation and efficiency measures. By steadily expanding artisanal capacity while maintaining strict quality control, Hermes reinforces the scarcity and exclusivity that underpin its pricing power and profitability.
Looking ahead, Hermes entered 2026 from a place of considerable strength despite continued uncertainty in macroeconomic landscape, currency volatility and uneven luxury demand globally.
The brand’s 2025 performance shows a broader structural shift underway across the luxury sector: the strongest growth and profitability increasingly belong to brands operating at the highest end of exclusivity, craftsmanship and scarcity. While most of the industry continues adjusting to softer aspirational spending and post-pandemic normalisation, Hermes remains one of the few global luxury houses still capable of combining sustained revenue growth with operating margins above 40%.
With continued investment in artisanal manufacturing, disciplined distribution management and a geographically diversified client base, Hermes appears well-positioned to preserve both profitability and desirability as the global luxury market transitions into a more mature and increasingly polarised phase of growth.
Cover Image: Hermes.
Read the full Hermes International SA report Here, and
The full Hermes report Here.
For a deeper dive into the financial performance of other top luxury brands, explore the
LVMH Moët Hennessy - Louis Vuitton 2025 Financial Report here,
Tapestry Inc. H1 2025 Financial Report here, and
Kering 2025 Financial Report here.
Find more financial analysis here.