On October 22, prior to market opening, French luxury giant Hermès released its third-quarter and first-nine-months financial results for 2025. Despite ongoing global macroeconomic uncertainty, the Group maintained steady sales growth.
For the first nine months, Hermès reported revenue of €11.9 billion, representing an 8.6% year-on-year increase at constant exchange rates (6.3% at current exchange rates). The report also disclosed that currency fluctuations had a negative impact of €254 million on the Group’s revenue.
In the third quarter alone, revenue reached €3.9 billion, up 9.6% year-on-year at constant exchange rates—a slight improvement compared to the second quarter (with growth of 7.2% and 9.0% in the first and second quarters, respectively). This performance once again underscores the strength and resilience of Hermès’ business model.
The Group stated that all Asian countries continued to show growth, with Greater China standing out in particular. In March, the Taichung store in Taiwan reopened after renovations; in June, the renovated and expanded store at the Four Seasons Hotel in Macau also reopened.
Axel Dumas, Executive Chairman of Hermès, commented, “In the third quarter, Hermès is maintaining its course, thanks to solid growth that reflects the strength of our model. We remain focused on navigating uncertainties, thanks to the loyalty of our customers and the commitment of our employees.”
Following the significantly better-than-expected earnings released last week by another French luxury giant, LVMH, industry attention turned to Hermès’ report. Although Hermès delivered solid growth in the third quarter, it still fell short of analysts’ average expectation of 10%. After the market opened, Hermès shares declined; by 10:00 a.m. local time, the stock was down 3.51% at €2,171 per share, giving the company a market capitalization of €228.4 billion.
One day before the earnings release, Hermès announced that British designer Grace Wales Bonner would take over as Artistic Director for Men’s Ready-to-Wear, succeeding the recently departed Véronique Nichanian.
By Region
As of the end of September 2025, all geographic regions achieved growth, with Hermès’ exclusive distribution network continuing to expand.
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Asia (excluding Japan) (+4.0%): Growth continued across all countries, particularly in Greater China. In the third quarter, the region benefited from the brand’s value-driven strategy, strong local customer loyalty, and high-quality network development. Renovated and expanded stores reopened at Bangkok’s Central Embassy mall in January, Taichung in Taiwan in late March, the Four Seasons Hotel in Macau in June, and at Galleria in Seoul in August.
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Japan (+15.2%): Sustained its growth momentum after a solid third quarter, driven by loyal local customers.
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Americas (+12.5%): Growth momentum was reaffirmed, with a slight acceleration in the third quarter, particularly driven by the U.S. market. A new store opened in Scottsdale, Arizona, in September, followed by another in Nashville, Tennessee, in October.
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Europe (excluding France) (+11.7%) and France (+9.3%): The European market recorded solid growth across all countries, while France also benefited from strong activity across all its stores.
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Other regions (+15.4%): Primarily comprising the Middle East, this region continued its strong growth trajectory.
By Business Line
As of the end of September 2025, the Leather Goods & Saddlery segment and other Hermès business lines recorded solid sales growth. Ready-to-Wear & Accessories and Silk & Textiles both saw growth accelerate in the third quarter.
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Leather Goods & Saddlery (+12.6%): Delivered an outstanding performance in line with its annual trajectory, driven by strong demand for signature products and new collections. New equestrian-style pieces such as the Tablier Sellier and Besace Trotting, along with the return of the iconic Plume bag, were particularly successful.
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Ready-to-Wear & Accessories (+5.8%): Continued its upward trend, with growth accelerating in the third quarter. The 2026 Spring/Summer Men’s show, held in June at the Palais de Iéna, received excellent feedback, and the 2026 Spring/Summer Women’s collection debuted successfully in early October at the Garde Républicaine.
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Silk & Textiles (+3.7%): Achieved growth thanks to bold designs, exceptional materials, and a diverse range of styles.
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Other Hermès Business Lines (+10.7%): Including jewelry and home collections, these segments continued to post strong growth. The eighth high jewelry collection, “Les formes de la couleur,” was showcased in Tokyo in July.
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Fragrance & Beauty (-5.0%): This segment was impacted by a high comparison base due to the launch of Barénia perfume in the same period last year.
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Watches (-3.1%): Despite a challenging environment, the watch segment continued to evolve. The new editions of the Hermès H08 series and the reinterpretation of the iconic complication “Le temps suspendu” (“Suspended Time”) were well received.
Supply Chain Highlights
Hermès continues to strengthen its production base in France and reaffirms its long-term commitment to local employment. In September, the Group inaugurated its 24th leather workshop in L’Isle-d’Espagnac (Charente), which will employ 260 local artisans trained by the Hermès craftsmanship school.
The Group also announced plans to open three additional leather workshops over the next three years: in Loupes (Gironde, 2026), Charleville-Mézières (Ardennes, 2027), and Colombelles (Calvados, 2028).
Looking Ahead
In the medium term, despite economic, geopolitical, and currency uncertainties worldwide, the Group reaffirmed its ambitious revenue growth targets at constant exchange rates.
Amid an increasingly uncertain economic and geopolitical environment, Hermès remains confident in its future development, supported by its highly integrated craftsmanship model, balanced distribution network, creatively rich collections, and loyal customer base.
The annual theme for 2025 is “Drawn to Craft.” From saddle stitches to pencil strokes, everything at Hermès begins with drawing.
| Source: Official Financial Report
| Image Credit: Hermès Official Website
| Editor: LeZhi
