Hermès is growing more strongly than expected in 2025
While LVMH, Kering and the Swatch Group (Richemont's financial year ends on March 31, 2026) had to present modest to sobering figures for 2025, while Hermès looks back on a successful year in 2025.
Hermès' group revenue in 2025 amounted to €16 billion, an increase of 5.5 percent at current exchange rates compared to 2024 (adjusted for currency fluctuations +8.9 percent). The company particularly exceeded analysts' expectations in the fourth quarter with revenue growth of ten percent, even though profit for the full year declined by 1.7 percent to €4.5 billion.
Hermès reports solid sales growth in all regions. Europe, Japan, the Americas, and the Middle East even recorded double-digit growth.
Axel Dumas, CEO of Hermès, commented: „The Hermès model, based on an exclusive, high-quality network and strong vertical integration, has once again proven its worth. This unique strategy has enabled the House to achieve robust sales growth and strong performance. My sincere thanks go to the Hermès teams who share our commitment to uncompromising quality, as well as to our loyal customers. In an uncertain environment, Hermès looks to 2026 with confidence, supported by its creativity and exceptional savoir-faire.“
The most significant increases in sales were in the leather goods (+13 %) and jewelry (+11 %) sectors, while perfume and beauty (-8 %) and watches (-2 %) declined.
Expansion of watch production despite declining sales in 2025
However, the watch division returned to growth in the second half of the year. Hermès attributes this primarily to the new versions of the "H08" line and the reinterpretation of "Le temps suspendu". Total revenue in the watch segment for 2025 amounted to €549 million.
Hermès apparently sees a lot Potential in the watch segment and is expanding production in this area. The corresponding expansion in Noirmont is scheduled for completion in 2028. Currently, the company generates only about four percent of its revenue from watches.
