Hermès confirms its upturn and posts a 9% increase in the first quarter of 2025

On Thursday, 17 April, the Hermès group's results were eagerly awaited after the disappointing figures released by luxury goods giant LVMH on Monday. And the leather goods manufacturer confirmed the excellence of its strategic choices. Axel Dumas, CEO of Hermès, said: ‘In a complex geopolitical and economic environment, the company is strengthening its fundamentals more than ever: uncompromising quality, creation at the heart of all development and vertical integration, which guarantees the preservation of our expertise and excellence. Despite a high base of comparison in the first quarter, the group continues to grow strongly thanks to the confidence of its customers and the commitment of its teams, whom I would like to warmly thank.’

At the end of March, all geographical areas were up. Japan posted growth of 17%, while the United States confirmed its positive momentum with an 11% increase, highlighted by March, which was up according to the group. Europe, excluding France (+13%) and France (+14%), posted solid growth, benefiting from purchases by foreign tourists. Asia, excluding Japan, held its ground and remained stable at +1%. The group benefited from the reopening of stores in Taiwan and Thailand. The Middle East, included in a broader zone (Other zone +14%), also confirmed its momentum.

Hermès also performed very well across its business lines, starting with leather goods and saddlery, which posted 10% growth (and €1.8 billion in revenue), offsetting the difficulties experienced by other groups in this business. The expansion of the collections, with the launch of new Médor and Mousqueton bags, among others, boosted demand, helped by the opening of the new production site in Riom in the second half of 2024. The group plans to open a new site in Charente this year and two more in the next two years.

The Clothing and Accessories division is also up, at +7% (€1.1 billion). Silk and textiles posted growth of 5% (€256 million). The Perfume and Beauty division remained stable, with a turnover of €129 million. Only watchmaking declined, with a 10% drop to €151 million in revenue. Jewellery, included in the Other Hermès businesses division, which also includes home products and tableware, posted a 6% increase to €544 million in revenue.

Undeniably, the strategy of maintaining very high quality, vertical integration and balanced distribution is proving resilient. However, the 10% customs duties imposed by the United States will certainly also have an impact on the group. The Americas are Hermès' third largest market.

The group's market capitalisation is currently at an all-time high, leading the CAC40 and surpassing the LVMH group. The share price stands at £2,363.