On July 30, Paris- Hermès International released its financial results for the first half of 2025, demonstrating continued strong growth despite increasing global economic uncertainty. Sales in the second quarter reached €3.9 billion, marking a 9% year-on-year increase at constant exchange rates. This result slightly exceeded analysts’ expectations and underscored the brand’s enduring value and stable demand across global markets.
For the first half of the year (January to June), revenue totaled €8 billion, reflecting an 8% increase at constant exchange rates and 7% at current rates. Operating income rose 6% year-on-year to €3.3 billion, representing 41.4% of total sales. Meanwhile, net profit declined to €2.2 billion from €2.4 billion the previous year, due to a one-time tax on large corporations in France. Excluding this tax, net profit rose to €2.5 billion—up 6% year-on-year.
By region, Japan was a standout performer, with second-quarter sales rising 14.7% to €392 million. This contrasts sharply with competitors such as LVMH, which reported a sales decline in Japan during the same period. The broader Asia region (excluding Japan) also grew by 5.3% in the quarter, as Hermès maintained resilient demand through a value-driven strategy, even amid continued economic uncertainty.
The Americas likewise maintained double-digit growth, up 12.3% to €760 million. A price increase implemented in early May in the U.S. partially offset negative currency effects. The company is closely monitoring developments related to a new trade agreement between the U.S. and the EU, under which a baseline 15% tariff is expected to take effect.
Commenting on the Japanese market’s strong performance, Hermès International CEO Axel Dumas said, “That move has really created a resilient model as a result of our strength with local customers.”
He added: “The solid first-half results across all regions reflect the strength of the Hermès model. I would like to thank all our customers for their trust and all our employees for their commitment. We will continue to invest and recruit to ensure the group’s sustained success.”
By product category, leather goods led the way with a 14.8% increase, generating €1.76 billion in revenue. In addition to iconic models like the Kelly and Birkin, newly introduced styles such as the Faubourg Express and P’tit Arçon also performed strongly. Hermès plans to open four new leather workshops annually in France, further enhancing production capacity.
In contrast, entry-level categories such as belts, costume jewelry, scarves, and fragrances saw signs of a slowdown. Ready-to-wear grew by 3.8%, and silk products by 2.2%, reflecting weaker accessory demand. The fragrance and beauty segment declined by 7.2%, while watches were down 5.5%. However, a long-term recovery is expected as Hermès proceeds with the expansion of its watchmaking facility in Noirmont, Switzerland.
This term also saw the completion of store renovations in Taiwan and Macau, with operations now resumed. Major refurbishments in Beijing and Dubai are underway, and new stores are scheduled to open in Scottsdale and Nashville (U.S.), as well as Shenzhen and Guangzhou (China). Full-year investments are projected to exceed €1 billion, with a focus on digital infrastructure, logistics, and upstream production in textiles, homeware, and fragrances.
Hermès recently drew global attention when the “original Birkin bag,” once owned by the late Jane Birkin, was sold at a Sotheby’s auction in Paris for €8.6 million (approximately ¥1.47 billion) to Japanese company Valuence Japan Inc.
Despite the media buzz, CEO Axel Dumas made it clear that the brand does not associate with the secondary market. “We are not interested in and we don’t participate in secondhand markets,” he stated. Hermès adheres to a consistent pricing philosophy rooted in the true cost of craftsmanship, intentionally distancing itself from the speculative pricing often driven by auctions and resale hype.
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