On April 17, Hermès announced its financial results for the first quarter of 2025, revealing that revenue reached €4.1 billion (approximately $5.3 billion), marking a 9% increase year-over-year (+7% at constant exchange rates). Despite a complex economic climate, the French luxury house delivered a strong start to the year.
Japan Leads Growth Across Global Regions
Among all geographic regions, Japan recorded the highest growth at 17.9%, driven by continued loyalty from local customers. In Europe, France posted a 14.2% increase and the rest of Europe grew by 12.7%, supported by robust local demand and a rebound in tourism. The Americas saw a 13.3% increase, despite disruptions early in the quarter caused by wildfires and snowstorms that temporarily closed several U.S. stores. Nonetheless, all cities reported solid sales in March.
In contrast, Asia-Pacific (excluding Japan) grew by just 1.2%, impacted by a high base from the previous year and ongoing consumer weakness in mainland China. “Sales in Greater China were essentially flat. Considering the high comparison base from Q1 2024, we believe the results are solid,” said Chief Financial Officer Eric Halgouët.
Taiwan maintained strong momentum thanks to a loyal customer base and a value-driven strategy, while Macao was affected by shifting Chinese tourism patterns. Competition has intensified in Shenzhen, but Hong Kong remains “an important financial hub.”
Leather Goods and Apparel Drive Revenue, Watches Decline
By category, Hermès’ iconic Leather Goods and Saddlery division posted a 10% increase, bolstered by demand for new handbag models such as the Médor and Mousqueton. Ready-to-wear and Accessories followed with a 7.2% rise. Together, these two divisions accounted for approximately 72% of total revenue in the quarter.
However, Watches declined by 10% and Beauty by 0.5%. Combined, these segments contributed only 5.8% of the company’s quarterly revenue.
U.S. Price Adjustment Announced for May
Amid growing concerns over tariff increases between the U.S. and other nations, CFO Eric Halgouët confirmed, “Starting May 1, we will raise prices across all product categories in the U.S. to fully offset the 10% import duties imposed by the government.” He added, “This is an additional pricing adjustment aimed at neutralizing the impact, and we are finalizing the details now.”
Hermès had already implemented a global price increase of 6–7% earlier this year and typically adjusts prices only once annually. The upcoming U.S. revision reflects a broader industry trend, as other companies like LVMH have taken similar steps to protect profitability.
A Clear Contrast with LVMH Highlights Strategic Strength
Earlier this week (local time), Hermès International SCA briefly surpassed its long-time rival LVMH in market capitalization, a company that once attempted to acquire it. Hermès’ valuation reached €243.65 billion (approx. $276 billion), temporarily overtaking LVMH’s €243.44 billion. This milestone made Hermès the most valuable company on France’s CAC 40 index, and the third-largest listed company in Europe, behind Germany’s SAP and Denmark’s Novo Nordisk.
The achievement underscores the diverging paths and business strategies between the two luxury giants. While LVMH reported a 3% decline in revenue (at constant exchange rates) for the first quarter, Hermès grew by 7%, reinforcing the brand’s resilience and differentiated model.
Hermès continues to invest in its artisanal foundation through expanded domestic production. In 2025, a new leather workshop will open in L’Isle-d’Espagnac in Charente. Two additional facilities are scheduled to launch in Loupes (Gironde) in 2026 and in Charleville-Mézières (Ardennes) in 2027. These new ateliers will strengthen the brand’s commitment to craftsmanship, heritage, and long-term growth.
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