French luxury goods maker Hermès International reported annual revenue of €16 billion for 2025, marking a solid rise from the prior year as demand for its premium products continued to outperform broader industry trends.
The company said on Thursday that full‑year revenue climbed about 9 % at constant exchange rates and 5.5 % on a reported basis, driven by robust sales in its leather goods division and strong growth across major markets including the United States, Japan and Europe. Fourth‑quarter sales reached around €4.1 billion, roughly a 10 % increase from the same period a year earlier.
Hermès’ recurring operating income rose to about €6.6 billion in 2025, with an operating margin of roughly 41 %, slightly higher than in 2024. Net profit attributable to shareholders was €4.5 billion, broadly in line with sales growth once one‑off corporate tax effects are taken into account.
Executive Chairman Axel Dumas said the group’s model of tight control over production and exclusive distribution continued to “prove successful” in a luxury market challenged by uneven global demand and economic uncertainty. Leather goods and saddlery, including iconic Hermès handbags, remained the primary engine of growth, while other categories showed varied performance.
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Hermès outpaced some rivals in the final quarter of 2025, with its 9.8 % year‑on‑year sales growth beating many analysts’ expectations. The performance contrasted with slower demand seen at other high‑end brands and underscored Hermès’ resilience amid a more subdued luxury spending environment.
Shares in Hermès rose modestly following the earnings announcement, reflecting investor confidence in the firm’s ability to sustain premium pricing and strong demand among affluent consumers. As competitors have pulled back on price increases, Hermès signaled plans for moderate average price rises in 2026 to offset cost pressures and currency headwinds.
The results cement Hermès’ position as one of the best‑performing luxury houses, with its emphasis on craftsmanship, limited production and global expansion helping it weather broader industry challenges.
