Hermès Posts €16B Year as Leather Division Jumps 13%

Image courtesy: Hermès

Hermès has officially crossed a new milestone. Despite currency headwinds and ongoing global uncertainty, the Maison’s revenue amounted to €16 billion in 2025 — proving once again that its highly controlled, artisanal model continues to outperform the broader luxury market.

Hermès delivered steady growth across regions and categories, with Leather Goods once again leading the charge. Full-year revenue rose 9% at constant exchange rates (5.5% at current rates) compared to 2024. In the fourth quarter alone, sales climbed to €4.1 billion, up 10% at constant exchange rates — matching the pace of the previous quarter and showing solid momentum heading into 2026.

Axel Dumas, Executive Chairman of Hermès, stated:

“The Hermès model based on an exclusive and qualitative network, as well as strong vertical integration, has once again proven successful. This distinctive strategy has enabled the house to achieve robust revenue growth and strong performance. . . In an uncertain environment, Hermès is moving into 2026 with confidence, underpinned by its creativity and exceptional savoir-faire.”

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Hermès reported growth across all geographical areas in 2025, which it attributes to its global resilience and well-balanced geographic distribution in a complex economic environment.

Europe, Hermès’ home ground, delivered another year of “solid” performance. France grew 9%, buoyed by loyal domestic clients and steady tourist flows, while Europe (excluding France) advanced 11%. Contributing to this growth was the reopening of the renovated Florence boutique in February, with the Knokke store in Belgium welcoming clients once again in November. Looking ahead, Hermès will open its New Bond Street flagship in London on June 16, 2026, at 166 New Bond Street.

Revenue in the Americas advanced 12%, completing what Hermès described as an excellent year. Expansion remained a key focus, with new stores inaugurated in Scottsdale, Arizona, and Nashville, Tennessee, while the renovated Molière boutique reopened in Mexico City.

Japan continued its trajectory, rising 14% over the year, supported by loyal local clients and its highly controlled distribution network. In November, the immersive Mystery at the Grooms event was staged in Tokyo, further strengthening engagement around the Maison’s objects and craftsmanship.

Asia (excluding Japan) advanced 5% over the year, confirming the gradual recovery signalled in the third quarter, when Hermès noted a modest improvement in Mainland China. That progress carried through to year-end, with fourth-quarter growth accelerating to 8%, supported by boutique reopenings and extensions in Macao, Seoul, Bangkok, and Changsha.

Finally, the ‘Other’ area — which primarily includes the Middle East — recorded the strongest increase at 15%, as Hermès pointed to particularly robust performance in the United Arab Emirates.

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Across the various métiers, Hermès delivered broadly positive results in 2025, with most categories posting growth. Once again, Leather Goods and Saddlery set the pace, with revenues up 13%, as it remained the primary engine of expansion for the Maison. The category continued to benefit from strong desirability, increased production capacity, and the introduction of new models, including the So Médor, Seau Mousqueton, and Haut à Courroies à relier.

To support sustained demand, Hermès inaugurated its twenty-fourth leather goods workshop in L’Isle-d’Espagnac (Charente) in September. Expansion is set to continue, with planned openings in Loupes (Gironde) in 2026, Charleville-Mézières (Ardennes) in 2027, Colombelles (Calvados) in 2028, and a newly announced site in Les Andelys (Eure) by 2030.

Read: Hermès To Build Another Leather Workshop

Image courtesy: Hermès

Ready-to-Wear and Accessories advanced 6%, supported by the strong reception of the Spring-Summer 2026 collections and the emotional presentation of Véronique Nichanian’s Fall-Winter 2026 men’s collection. Silk and Textiles rose 5%, with a particularly solid fourth quarter, which Hermès attributes to innovation in formats and color. Meanwhile, the Other Hermès sectors — including Jewellery and the Home universe — increased 11%, highlighted by new additions to the Adage jewellery line and the Haute Bijouterie collection Les formes de la couleur.

Two categories, however, faced more challenging comparisons. Perfume and Beauty declined 8%, weighed against a demanding 2024 base marked by the launch of Barénia. Watches slipped 2% for the year, although the second half returned to growth, supported by the success of the H08 line and reinterpretations of the emblematic Le temps suspendu. The planned expansion of the Noirmont watchmaking site in Switzerland by 2028 further signals continued investment in the category.

Image courtesy: @birkinboy

Several insights emerged during the Q&A portion of Hermès’ presentation, shedding light on the Maison’s upcoming initiatives and pricing strategy.

On haute couture and skincare, Axel Dumas commented on which would arrive first before confirming that Hermès has recruited workshops and seamstresses to prepare. He highlighted the care and time required for these initiatives, praising the work of the teams and saying he was “really quite excited” about the progress. Emphasizing that the projects must be completed at the right time, he added, “we’ll be ready when we’ll be ready,” and closed on an optimistic note: “it’s on its way.”

Regarding annual price adjustments, Dumas confirmed an average increase of 5–6% across categories at the beginning of the year. Eric du Halgouët, Executive Vice-President Finance, added that the adjustments reflect higher production costs — including materials such as gold, and cover staff bonuses.

When asked about the situation in China, Axel Dumas acknowledged ongoing concerns about personal wealth and financial confidence, noting that these factors influence consumers’ appetite for luxury more than economic growth alone. He highlighted that Leather Goods remain a solid pillar for the Maison, alongside Women’s Ready-to-Wear and Jewellery, which are also strong, high-value divisions.

Dumas added a touch of humor referencing a New York Times headline, “Could Labubu have existed without the Birkin?” and discussed the rise of Chinese brands expanding into Europe, including in sportswear. He emphasized that Hermès does not aim to be the only brand in the world; rather, the growing presence of other brands can increase overall demand for luxury, which ultimately benefits Hermès.

As for Hermès employees, the group increased its workforce by more than 1,300 people in 2025, including 800 in France, bringing the total headcount to 26,494 worldwide. Dumas announced that all employees worldwide will receive a €120 wage increase and a €3,000 bonus in March. The company also proposed a dividend of €18.00 per share at the General Meeting on 17 April 2026, with €5.00 paid in advance.

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Questioned about whether Hermès’ increasing leather production will affect desirability, Dumas rejected the oft-cited Ferrari idea that production should equal demand minus one car. Instead, he pointed to the evolution and diversification of Hermès’ product mix: 13 years ago, leather accounted for 55% of revenues, and now it is 45%. However, for Hermès shoppers, this obscures whether that diversification is truly independent of leather demand, or, as many claim, a reflection of clients purchasing other products to build a relationship and access the highly coveted Birkin and Kelly bags.

Looking ahead, Hermès remains confident despite global uncertainties, relying on its artisanal model, curated distribution, and creative collections to sustain steady growth and preserve its hallmark craftsmanship. The Maison also faces a year of creative transition, as it anticipates Grace Wales Bonner’s inaugural collection in 2027, while the Hermès design team develops an interim men’s Spring-Summer 2027 collection in June to maintain creative continuity.

The theme for the year, “Venture Beyond,” reflects Hermès’ ambition to explore new horizons while staying rooted in craftsmanship, creativity, and the Maison’s savoir-faire. With a proven business model and continued investment in people, production, and innovation, Hermès is positioned to navigate this transitional period and continue shaping the future of luxury.