Leather Goods Lead 9% Growth as Operating Margin Holds at 41% and Global Regions Post Broad Gains
Hermès closed 2025 with consolidated revenue of €16 billion, up 9 percent at constant exchange rates and 5.5 percent at current rates, underscoring the house’s continued resilience in a volatile luxury environment. Recurring operating income reached €6.6 billion, representing 41 percent of sales and rising 7 percent year-on-year, while net profit (group share) totaled €4.5 billion, up 5.5 percent, in line with sales growth when excluding France’s exceptional corporate tax contribution.
Fourth-quarter sales came in at €4.1 billion, increasing 10 percent at constant exchange rates, matching the prior quarter’s pace against a high comparison base. Growth was broad-based, with Europe, Japan, the Americas and the Middle East all delivering double-digit gains.
Across métiers, Leather Goods and Saddlery remained the engine of performance, rising 13 percent for the year as Hermès expanded production capacity and inaugurated its twenty-fourth leather workshop in France. Additional sites are planned through 2030, reinforcing the group’s vertical integration strategy. Ready-to-wear and Accessories grew 6 percent, Silk and Textiles gained 5 percent, and the Jewellery and Home universe rose 11 percent. Perfume and Beauty declined 8 percent against a demanding comparison, while Watches fell 2 percent for the year but returned to growth in the second half, supported by new iterations of the H08 and Le temps suspendu.
By geography, Japan rose 14 percent, supported by a loyal domestic clientele and exclusive distribution. The Americas climbed 12 percent, capping what the company described as an excellent year, with new store openings in Scottsdale and Nashville and a renovated flagship in Mexico City. Europe excluding France grew 11 percent, while France increased 9 percent, buoyed by local demand and tourist flows. Asia excluding Japan advanced 5 percent for the year and 8 percent in the fourth quarter, with several renovated and expanded stores reopening across Macau, Seoul, Bangkok and mainland China. The Middle East contributed to a 15 percent rise in the “Other” category, led by strength in the United Arab Emirates.
Throughout the year, Hermès continued to invest in store renovations and measured network expansion, maintaining what it describes as an exclusive and qualitative distribution model.
“The Hermès model based on an exclusive and qualitative network, as well as strong vertical integration, has once again proven successful. This distinctive strategy has enabled the house to achieve robust revenue growth and strong performance. I warmly thank the Hermès teams who share our commitment to uncompromising quality as well as our customers for their loyalty. In an uncertain environment, Hermès is moving into 2026 with confidence, underpinned by its creativity and exceptional savoir-faire,” said Executive Chairman Axel Dumas.