Hermès Confirms Another Price Increase Is Coming in 2027

The wait for a Birkin hasn’t gotten any shorter — and Hermès’ First-Half 2026 results reflect it. Revenue reached €8.2 billion, up 6% at constant exchange rates, as demand for its handbags shows no signs of slowing.

Sales improved slightly in the second quarter, reaching €4.1 billion — a slight acceleration from the first quarter’s pace. Axel Dumas, Executive Chairman of Hermès, stated:

“In the first half of 2026, Hermès delivered a solid performance, which reflects the strong desirability of its 16 métiers and the trust of its clients. Convinced by the strength of our unique artisanal model and in control of our key balances, we look to the second semester with confidence.”

Looking deeper into the results, all geographic areas showed growth except the Middle East.

The Americas once again delivered the strongest performance, with revenue rising 15% across all countries and métiers.

Europe excluding France followed with 9% growth, supported by continued local demand throughout the region. During the period, Hermès reopened its renovated Berlin boutique and unveiled its new Maison at 166 New Bond Street in London, spanning six buildings and more than 2,000 square metres.

After a weaker first quarter, France returned to growth, rising 2% as tourist traffic recovered alongside continued support from local customers. During the Q&A, Axel Dumas attributed the gap between France and the rest of Europe to Hermès’ extensive domestic store network, explaining that local clients typically purchase “smaller baskets” than international tourists. He also noted that reduced visitor numbers from the Middle East weighed on Parisian stores during the first quarter, before tourism picked up in the second.

Japan continued its strong momentum, recording 11% growth, while Asia excluding Japan increased 2%. Hermès noted ongoing progress in Greater China, alongside particularly strong performance in Korea. The period also saw the opening of the Sanlitun boutique in Beijing, the reopening of renovated stores in Hong Kong and Taipei, and the return of the traveling Hermès in the Making exhibition to Shanghai.

Asked about progress in the Chinese market, Dumas sees it as stabilized but not improved, as lower real estate values are affecting consumer sentiment. He suggested another unexpected KPI to consider: pork prices, which are low now, but an increase may indicate optimism as celebrations abound.

Across Hermès’ métiers, Leather Goods and Saddlery remains the Maison’s strongest-performing business, while several other categories gathered momentum as the second quarter progressed. Only the Perfumes and Beauty division saw revenue decline.

Leather Goods and Saddlery, Hermès’ largest division, now represents 46% of revenue (up one percent from last year). In H1, revenues rose 10%, with continued demand across every region. The Maison highlighted the launch of the new Cliquetis and Double Longe, as well as the strong reception to the Kelly Hobo ahead of its September debut.

Axel Dumas attributed the division’s continued strength to the breadth of Hermès’ leather goods offerings. While iconic styles such as the Birkin, Kelly, and Constance remain in exceptionally high demand, he noted that newer and more accessible designs, including the Picotin and Garden Party, continue to attract clients. Rather than relying on a handful of flagship bags, Hermès benefits from a diverse portfolio spanning multiple silhouettes and price points. Dumas also reiterated that quality remains the Maison’s overriding priority, stressing that products are only made when they meet the House’s exacting standards. “If it isn’t Hermès quality, we don’t produce it,” he explained.

To support demand, Hermès is continuing to expand production capacity, opening its 25th leather workshop in Loupes (Gironde) in April, 2026. Additional workshops remain scheduled for Charleville-Mézières in 2027, Colombelles in 2028, and Les Andelys by 2030.

Ready-to-Wear and Accessories grew 2%, benefiting from stronger momentum during the second quarter following the successful unveiling of the women’s Fall-Winter 2026 collection in Paris and its Second Chapter in Los Angeles.

Silk and Textiles accelerated to 10% growth. To celebrate the opening of the new Bond Street Maison, Hermès also introduced exclusive reinterpretations of several iconic scarves, including Bouquet Final, Cocoricooooo, and The New Hermès Record.

The Other Hermès sector, which includes Jewellery and the Home Universe, increased 5%, highlighted by the unveiling of the ninth Haute Bijouterie collection, Into the Horsescape, alongside the House’s latest Home collections presented during Salone del Mobile.

Perfume and Beauty remained the weakest-performing métier, declining 4%. Despite this, Hermès continued expanding the category with launches including Un Jardin sous la Mer, Musc Pallida, and Plein Air, the Maison’s first complexion product, which has reportedly been well received.

Meanwhile, Watches recovered to finish the first half broadly stable after a stronger second-quarter performance. Hermès also continued investing in the category, unveiling a titanium skeleton version of the Hermès H08 at Watches & Wonders while progressing with the expansion of its Swiss production facilities.

One interesting side note: when discussing the difference between the results in France and Europe and the importance of the local customer, Dumas said that Hermès prefers to sell to clients in their home country. For those tourists finding it more difficult to obtain a bag in Paris, that may be part of the reason.

Looking ahead, when asked about future pricing during the Q&A, Axel Dumas and Eric du Halgouët confirmed that collectors can expect another Hermès price increase in 2027. Although the increase is expected to be lower than the one introduced in January 2026, it will continue to reflect higher raw material costs, inflation, and the cost of manufacturing the Maison’s products in France.

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