Hermès International achieved a milestone in 2025 by surpassing €16 billion in consolidated revenue, marking a 5.5% increase at current exchange rates and 9% at constant rates compared to the previous year. Recurring operating income climbed 7% to €6.57 billion, pushing the operating margin to 41%, up from 40.5%. Despite a slight dip in reported net profit due to a one-time French tax levy, underlying profitability remained robust, supported by strong demand for leather goods, geographic diversification, and disciplined cost management. The results highlight Hermès’ resilience in a challenging luxury market environment.
Hermès Delivers Record Revenue and Enhanced Margins in 2025
The French luxury powerhouse crossed the €16 billion revenue threshold for the first time, posting consolidated sales of €16.002 billion for the full year. This performance reflects a 5.5% rise at current exchange rates from €15.17 billion in 2024, with the stronger 9% growth at constant exchange rates underscoring the underlying momentum stripped of currency fluctuations.
Growth was broad-based, with all geographic regions contributing positively despite varying paces. Asia excluding Japan advanced 5% at constant rates, maintaining solid traction across key markets including China, Korea, and Thailand, where renovated and expanded stores helped sustain demand. Japan stood out with 14% growth, fueled by loyal local clientele and exclusive events that reinforced brand engagement. The Americas delivered 12.4% expansion, driven primarily by U.S. consumers seeking timeless, high-quality pieces. Europe showed resilience with 11% growth excluding France and 9% in the domestic market, benefiting from both resident buyers and tourist traffic. The Middle East and other regions posted 14.9% constant-currency gains, highlighting emerging strength in these areas.
By business segment, Leather Goods and Saddlery—the core of Hermès’ iconic offerings—led the way with approximately 13% growth at constant rates, reaching €7.07 billion and accounting for the largest portion of total revenue. This division’s performance underscores the enduring appeal of Birkin and Kelly bags, along with other leather accessories crafted through the maison’s vertically integrated ateliers. Ready-to-wear and accessories grew around 6%, while silk and textiles increased 5%. Other Hermès sectors, including jewelry, homeware, and smaller categories, advanced 11%, demonstrating diversified momentum. Perfume and Beauty declined 8% after elevated prior-year demand, and watches eased 2%, but these represented smaller shares of the portfolio.
Key Financial Metrics
Hermès maintained exceptional profitability through tight control over costs and pricing discipline. Gross margin expanded to 71.1% from 70.3%, reflecting efficiencies in production and raw material management despite ongoing inflationary pressures. Recurring operating income rose to €6.569 billion, a 7% increase, translating to an operating margin of 41.0%—a slight but meaningful improvement from 40.5%. This margin enhancement came amid investments in craftsmanship, including new leather workshops and digital enhancements.
Net profit attributable to owners stood at €4.524 billion, down modestly due to an exceptional contribution on profits of large companies in France totaling around €330 million. Excluding this one-off item, net profit grew 5.5% in line with revenue trends, reaching approximately €4.855 billion. The group generated strong cash flow, supporting €1.16 billion in capital expenditures focused on store network expansion, renovations, and production capacity. The balance sheet remained fortress-like, with restated net cash exceeding €12.77 billion.
Regional and Segment Breakdown (2025 vs. 2024, at constant exchange rates where specified)
Revenue by Geography (approximate figures in € millions):
Asia excl. Japan: ~€6.5 billion (+5%)
Japan: ~€1.8 billion (+14%)
Americas: €3.075 billion (+12.4%)
Europe excl. France: ~€2.4 billion (+11%)
France: ~€1.5 billion (+9%)
Other (incl. Middle East): €697 million (+14.9%)
Revenue by Métier (in € millions):
Leather Goods and Saddlery: 7,070 (+13%)
Ready-to-wear and Accessories: 4,525 (+6%)
Silk and Textiles: 964 (+5%)
Other Hermès sectors: 2,055 (+11%)
Perfume and Beauty: 489 (-8%)
Watches: 549 (-2%)
Other products: 349 (+6%)
The fourth quarter provided a strong finish, with sales of €4.1 billion up 10% at constant rates, matching the prior quarter’s pace even against elevated comparables. Double-digit gains in Europe, Japan, the Americas, and the Middle East, alongside 8% growth in Asia excluding Japan, signaled sustained consumer interest.
Hermès’ strategy of exclusive distribution, qualitative network expansion—with over 15 store renovations and extensions plus new openings—and unwavering focus on artisanal quality continued to differentiate the brand. Vertical integration allowed the company to navigate supply chain challenges while preserving scarcity and desirability. Executive Chairman Axel Dumas emphasized the success of this model in delivering robust results amid uncertainty.
The performance reinforces Hermès’ position as a standout in the luxury sector, where controlled growth, premium positioning, and operational excellence have translated into consistent outperformance.
Disclaimer: This is a news report based on publicly available financial information and does not constitute investment advice, recommendations, or solicitation to buy or sell securities.
