French luxury brand Hermès registered a 5 per cent decline in net profit during H1, FY25 to €2.2 billion ($2.53 billion). However, the brand’s sales grew by 7.1 per cent to €8 billion ($9.2 billion) during the period. Excluding the one-time contribution, net income for the group's share actually increased by 6 per cent to €2.5 billion ($2.88 billion).
Axel Dumas, Managing Director hailed the ‘solid first-half results in all regions,’ emphasizing the company's commitment to continue to invest and recruit to ensure the continued success of the company.
The company’s sales in the Americas rose by a robust 9.5 per cent to €1.45 billion ($1.67 billion), propelled by double-digit growth in the United States despite a more volatile market. Dumas addressed concerns regarding the newly announced 15 per cent customs duties on exports to the US, stating he was waiting for the precise rules of the game. He clarified, the 15 per cent rate might include the earlier 10 per cent implemented in April and the existing 5 per cent, which would mean no further price increases from Hermès, which had already raised US prices by 5 per cent after the April tariff hike.
Dumas also highlighted another significant factor: ‘the falling dollar,’ noting its impact could be as substantial, if not more, than the tariffs.
Regionally, the company’s sales in Asia excluding Japan increased by 1.5 per cent increase to €3.57 billion ($4.11 billion), with Dumas observing, the sales atmosphere in China remains buoyant for the company. Japan experienced a 17.6 per cent growth in sales to €815 million ($937 million). In Europe, sales excluding France grew by 12 per cent to surpass the billion-euro mark (€1 billion / $1.15 billion), while sales in France itself increased by 8.7 per cent to €740 million ($851 million).
Looking at product categories, sales in Hermès' core business, leather goods and saddler increased by 11.3 per cent to €3.58 billion ($4.12 billion). Sales of clothing and accessories rose by 4.3 per cent to €2.25 billion ($2.59 billion). However, perfumes and beauty products experienced a 4.1 per cent decline to €248 million ($285 million), and watch sales fell by 8.9 per cent to €281 million ($323 million).
