French luxury fashion house Hermes has posted strong results for the first half of 2025, with consolidated revenue reaching €8 billion (~$9.20 billion) as of the end of June 2025, up 8 per cent at constant exchange rates and 7 per cent at current exchange rates compared to the first half of 2024 (H1 2024). Recurring operating income rose by 6 per cent to €3.3 billion (~$3.79 billion), representing 41.4 per cent of sales.
In terms of business segments, leather goods and saddlery rose 12 per cent, buoyed by sustained demand and increased production capacity. Ready-to-wear and Accessories climbed 6 per cent and silk and textiles were up 4 per cent, Hermes said in a release.
Net profit group share totalled €2.2 billion versus €2.4 billion last year due to an exceptional corporate contribution in France, but adjusted net profit excluding this stood at €2.5 billion (~$2.87 billion), up 6 per cent. Operating cash flow rose 4 per cent to €2.3 billion. Adjusted free cash flow reached €1.8 billion after investments and lease repayments.
After paying €2.7 billion in dividends, Hermes’ restated net cash position stood at €10.7 billion. Currency fluctuations negatively impacted revenue by €77 million. No shares were redeemed outside the liquidity contract.
Second quarter (Q2) sales reached €3.9 billion (~$4.48 billion), growing by 9 per cent at constant exchange rates, reflecting improved momentum versus Q1. All geographical regions recorded growth, with Japan up 16 per cent, the Americas rising 12 per cent, Europe excluding France increasing 13 per cent, France growing 9 per cent, and Asia excluding Japan advancing 3 per cent despite macro headwinds. The Middle East-led ‘Other’ region surged 17 per cent.
“The solid first-half results across all regions reflect the strength of the Hermes 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 to ensure the group’s sustained success,” said Axel Dumas, executive chairman of Hermes.
Looking ahead, Hermes maintained its medium-term ambition of revenue growth at constant exchange rates, underpinned by its integrated artisanal model, loyal customer base, and creative strength. The 2025 theme, ‘Drawn to Craft’, underscores the brand’s enduring focus on creativity and craftsmanship.
ALCHEMPro News Desk (HU)
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