Hermès defies the luxury slump

While Richemont, LVMH, Kering and the Swatch Group While the French luxury goods group is currently struggling with weak demand, especially in China, it is reporting a solid increase in sales and profits for the first half of 2025.

Sales in the first six months of the current year amounted to €8 billion, 8.1 percent (at constant exchange rates) more than in the first half of 2024. Operating profit increased by 6 percent to €3.33 billion, slightly more than analysts had expected.

Hermès sales increase worldwide

In addition, sales developed positively in all regions, including the Asia-Pacific region: Europe (+11 %), Japan (+16 %), Asia-Pacific (excluding Japan) (+3 %), Americas (+11.7 %), Others (+17.2 %).

But China is also currently a critical market for Hermès, where no sustainable recovery is yet evident, as CEO Axel Dumas confirmed during the presentation of the half-year figures: "Many customers are operating in 'wait-and-see' mode. The real estate market, the stock market, geopolitics – all of this is putting a damper on consumer sentiment."

Not all product areas are developing positively

With two exceptions, all product categories recorded growing sales in the first half of 2025: Leather & Saddlery Goods (+12 %), Ready-to-Wear Clothing & Accessories (+6 %), Silk & Textiles (+4 %), Jewelry & Home (+10 %), Perfume & Cosmetics (-4 %)).

Expansion of watch production despite decline in sales

Hermès' watchmaking segment suffered a decline of 8 percent in the first six months of the current year. Nevertheless, the group is significantly expanding its watchmaking production capacity. The expansion work in Noirmont is scheduled for completion by 2028.

Axel Dumas, Executive Chairman of Hermès, said when announcing the half-year results:

"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 new employees to ensure the Group's sustainable success."

However, when asked by analysts during the presentation, Dumas admitted that Hermès was also experiencing some hesitancy, particularly among so-called aspirational clients, i.e. new customers with limited purchasing power: