On October 22, French luxury house Hermès announced its financial results for the third quarter of 2025. The group reported revenue of €3.9 billion, marking a 10% increase at constant exchange rates (5% on a reported basis). Growth accelerated slightly from the previous quarter, driven by balanced performance across Europe, the Americas, and Asia.
Executive Chairman Axel Dumas stated, “In the third quarter, Hermès maintained its steady growth, reflecting the strength of our model. Supported by the loyalty of our customers and the commitment of our employees, we continue to navigate uncertainties with confidence.”
Strong Growth in the U.S. and Japan, Signs of Recovery in China
By region, the Americas saw a robust +13% increase, with the United States standing out as a key growth driver. Despite price hikes due to tariffs, U.S. sales grew 14.1% at constant exchange rates, fueled by steady store traffic. In October, the brand opened a new store in Nashville, Tennessee, further expanding its retail footprint.
Japan also continued its strong performance with a +15% increase, supported by consistent demand from local customers. Meanwhile, Asia excluding Japan, which includes Greater China, rose 4%, showing moderate recovery.
Chief Financial Officer Eric du Halgouët commented, “We observed a slight improvement in Greater China this quarter. Stabilized stock markets and property prices in major cities have supported demand, especially for high-value jewelry and watches.”
In Europe, sales in France rose 9%, while other European markets grew 12%, reflecting healthy tourist spending from the U.S. and the Middle East.
Leather Goods Remain Core Driver; Ready-to-Wear Steady
Hermès’ leather goods and saddlery division, the cornerstone of its business, increased 13% at constant exchange rates. In addition to classics like the Birkin and Kelly, new designs such as the Tablier Sellier and Besace Trotting performed well, while the revival of the iconic Plume bag attracted attention.
The ready-to-wear and accessories division rose 6%, maintaining steady momentum. Highlights included the Men’s Spring/Summer 2026 collection presented at Palais d’Iéna in June, the Fall/Winter 2025 show in Hong Kong in September, and the Women’s collection in October—all of which received positive responses.
The fragrance and beauty division, however, declined 5%, affected by tough year-on-year comparisons following the major launch of Barénia last year. Nonetheless, Hermès introduced Terre d’Hermès Eau de Parfum Intense and an intensified edition of Barénia, expanding the product lineup.
“Drawn to Craft”: Sustainable Growth Rooted in Craftsmanship
For 2025, Hermès continues to embrace “Drawn to Craft” as its annual theme, underscoring its dedication to craftsmanship and sustainability.
In September, the brand opened its 24th leather workshop in L’Isle-d’Espagnac, Charente, hiring 260 new artisans. Over the next three years, Hermès plans to open three additional workshops, reinforcing its commitment to local employment and responsible production.
Grace Wales Bonner Appointed as New Artistic Director of Menswear
Alongside its solid quarterly results, Hermès announced this week that Grace Wales Bonner has been appointed Artistic Director of Menswear, succeeding Véronique Nichanian, who has led the division for 37 years. The appointment marks a historic transition for the house.
Nichanian will present her final collection in January 2026, while Wales Bonner’s debut collection is scheduled for January 2027.
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