Cover Hermès’ business model, which places craftsmanship and human values at the heart of its creativity, continues to deliver results, even as many luxury powerhouses navigate a turbulent first half of 2025
Hermès’ business model, which places craftsmanship and human values at the heart of its creativity, continues to deliver results, even as many luxury powerhouses navigate a turbulent first half of 2025
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Hermès’ business model, which places craftsmanship and human values at the heart of its creativity, continues to deliver results, even as many luxury powerhouses navigate a turbulent first half of 2025.
“Chaos” is perhaps the most fitting word to capture the state of the luxury sector in early 2025, as major players such as Kering and LVMH posted less-than-rosy figures impacted by tariff tensions, economic slowdown and ongoing global political unrest.
Yet, against this challenging backdrop, Hermès International SCA Group unveiled an impressive set of half-year results to the end of June 2025. The report revealed robust sales growth and a marked rise in recurring operating profit, underscoring the resilience of its distinctive business model in an unpredictable economy, and reaffirming Hermès’ position as a leading force in luxury unaffected by shifting times.
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Impressive global growth
Hermès’ consolidated revenue for the first half of 2025 reached €8 billion, an 8 per cent rise at constant exchange rates and 7 per cent at current rates compared with the same period in 2024. This points to the enduring global desirability of Hermès creations, with all regions reporting gains. Recurring operating profit climbed to €3.3 billion—up 6 per cent—accounting for 41.4 per cent of total revenue.
“The strength of our first-half performance across all markets reflects the enduring power of the Hermès model,” said Axel Dumas, CEO of Hermès, reaffirming the maison’s dedication not only to growth but to nurturing its artisanal heritage and safeguarding its human capital.
Above Hermès’ consolidated revenue for the first half of 2025 reached €8 billion
Hermès’ consolidated revenue for the first half of 2025 reached €8 billion
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In the first six months of 2025, Hermès continued to expand its selective distribution network with notable developments:
- Asia ex-Japan (+3 per cent) rebounded in the second quarter, with most markets showing growth, supported by loyal local clientele and a strong brand-value strategy.
- Japan (+16 per cent) maintained exceptional momentum, driven by the steadfast loyalty of domestic customers and a well-established, high-quality distribution network.
- The Americas (+12 per cent) sustained solid progress, with double-digit gains in the United States despite a more unpredictable market environment.
- Europe, excluding France, saw growth of 13 per cent, reflecting the maison’s firm foothold, supported by both repeat business and new customer visits. In France itself (+9 per cent), Hermès boutiques also enjoyed healthy increases.
- In other territories, notably the Middle East, growth reached an impressive 17 per cent, confirming the region’s strong performance.
Traditional business spearheads
All of Hermès’ principal métiers delivered significant advances in the first half of 2025:
Leather goods such as saddlery (+12 per cent) maintained steady growth in line with the annual trajectory, supported by expanded production capacity and sustained demand across all regions. The collections were enriched with fresh bag silhouettes, including the Faubourg Express, P’tit Arçon, Médor and Bolide Messenger. Hermès continues to channel significant investment into production, with the inauguration of a new leather workshop in L’Isle-d’Espagnac this September, alongside the ongoing construction of facilities in Loupes and Charleville-Mézières, set for completion in 2026 and 2027. Notably, the maison announced its 10th leather centre in Normandy, with a new site in Colombelles planned for 2028, underscoring its dedication to employment and craftsmanship training in France.
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Above In the first six months of 2025, Hermès continued to expand its selective distribution network with notable developments
Above In the first six months of 2025, Hermès continued to expand its selective distribution network with notable developments
In the first six months of 2025, Hermès continued to expand its selective distribution network with notable developments
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The apparel and accessories division (+6 per cent) drew momentum from the latest ready-to-wear collections, showcased in standout presentations in Paris and Shanghai. The silk and textiles division (+4 per cent) also preserved its upward trajectory, bolstered by an ever-evolving materials portfolio and a diverse approach to design.
Although the global market downturn left its mark, the younger divisions such as fragrances and beauty (-4 per cent) and watches (-8 per cent), posted only modest declines year on year. Both continue to demonstrate long-term promise, introducing new creations and expanding capabilities, including the planned extension of the Noirmont watchmaking facility in 2028. Management remains confident in their sustained growth outlook.
Other Hermès métiers (+10 per cent), notably jewellery and homeware, also achieved solid gains, propelled by the maison’s distinctive identity and inventive spirit. Highlights included standout pieces at the Salone del Mobile and the groundbreaking of the new Table Art workshop in Couzeix.
Bright future in troubled times
Hermès’ net profit for the first half of 2025 reached €2.2 billion. When adjusted for the exceptional tax contribution from large French corporations, that figure rises to €2.5 billion, representing a 6 per cent increase over the same period in 2024. Operating cash flow came in at €2.3 billion, up 4 per cent, while total net cash at the close of June 2025 stood at €10.7 billion, an enviable position for any global luxury house.
Above Hermès’ net profit for the first half of 2025 reached €2.2 billion
Hermès’ net profit for the first half of 2025 reached €2.2 billion
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The maison also reaffirmed its commitment to sustainability and social responsibility, creating over 500 new jobs in the first half of the year, including 300 in France, bringing its global workforce to 25,700. In recognition of its strong performance, Hermès awarded each employee worldwide €4,500, a gesture that reflects the brand’s ethos of care and accountability. The group also advanced its diversity and inclusion efforts: direct employment of disabled workers in France reached 7.90 per cent, and pursued initiatives aimed at tackling climate change.
Credits
Images: Hermès
