Hermès to grow stronger than expected in 2025
While LVMH, Kering, and the Swatch Group (Richemont’s fiscal year ends on March 31, 2026) had to present modest to sobering figures for 2025, Hermès can look back on a successful year in 2025.
Hermès’ consolidated revenue amounted to €16 billion in 2025, an increase of 5.5 percent at current exchange rates compared to 2024 (adjusted for currency fluctuations +8.9 percent). In the fourth quarter in particular, the company exceeded analysts’ expectations with revenue growth of 10 percent, even though full-year profits declined by 1.7 percent to €4.5 billion.
Sales growth was solid in all regions, Hermès reports. Europe, Japan, America, and the Middle East even recorded double-digit growth.
Axel Dumas, Chairman and CEO of Hermès, comments: “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, and to our loyal customers. In an uncertain environment, Hermès looks ahead to 2026 with confidence, supported by its creativity and exceptional savoir-faire.”
Sales increased most significantly in the leather goods (+13%) and jewelry (+11%) segments, while perfume and beauty (-8%) and watches (-2%) declined.
Expansion of watch production despite decline in 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.” For the full year 2025, sales in the watch segment amounted to €549 million.
Hermès clearly sees great potential in the watch segment and is expanding production in this area. The corresponding expansion in Noirmont is scheduled for completion in 2028. To date, the company generates only around four percent of its revenue from watches.
