Hermès: Strong Growth in 2025 Results
Luxury group Hermès has surpassed the 16 billion euros revenue mark in 2025. The current operating income increased by 7% while the net income reached 4.5 billion euros.
Robust Sales Performance Across All Regions
In 2025, the group's consolidated revenue amounted to 16 billion euros, marking a growth of 9% at constant exchange rates and 5.5% at current exchange rates compared to 2024. This growth occurred in a context marked by a significant unfavorable impact of 515 million euros due to currency exchange fluctuations. The fourth quarter recorded sales of 4.1 billion euros, up by 10% at constant exchange rates, maintaining the pace set in the previous quarter. All regions recorded solid growth. Europe, Japan, America, and the Middle East grew by double digits. Asia excluding Japan grew by 5%, with the fourth quarter up by 8%. Japan continued its strong performance with a 14% increase. America had an excellent year with a 12% growth. Europe excluding France and France itself saw increases of 11% and 9% respectively. The Other region, mainly comprising the Middle East, grew by 15%.
Operational Profitability and Net Income Analysis
The current operating income stood at 6.6 billion euros, up by 7% from 6.2 billion euros in 2024. The current operational profitability reached 41.0% of sales compared to 40.5% the previous year, improving despite the negative exchange rate impact. The consolidated net income attributable to the group, including the exceptional contribution on the profits of large companies, was 4.5 billion euros compared to 4.6 billion in 2024. Excluding this exceptional contribution, the consolidated net income attributable to the group amounted to 4.86 billion euros and grew by 5.5%, in line with sales growth. The cash flow from operations reached 5.4 billion euros, up by 5%. Excluding the exceptional contribution, it increased by 11%. After accounting for operational investments of 1.2 billion euros and the repayment of rental debt of 0.3 billion euros, the adjusted available cash flow amounted to 3.9 billion euros. The adjusted net cash position was 12.8 billion euros at the end of December 2025, compared to 12.0 billion euros at the end of December 2024.
Continued Growth in Leather Goods and Employment
The leather goods and saddlery segment continued its strong growth of 13% at constant rates, driven by the high desirability of the collections and increased production capacities. Apparel and accessories also showed strong momentum with a 6% increase. The group strengthened its workforce by more than 1,300 people, nearly 800 of whom are in France, bringing the total number of employees to 26,494 by the end of 2025, with 16,349 based in France. Over three years, Hermès has created nearly 6,200 jobs, more than 3,500 of which are in France. The group announced a monthly gross salary increase of 120 euros for all employees in France and will pay a bonus of 3,000 euros to all its employees for the year 2025 in March. At the general meeting on April 17, 2026, it will be proposed to set the dividend at 18.00 euros per share, with an advance payment of 5.00 euros on February 18, 2026.
