Companies

Hermès continues to outperform the sector, but growth slows

Apr 21, 2025 France

The French luxury group continues to outperform the sector, but its growth has slowed in the first quarter, as compared to the prior quarter. US prices to rise from May due to the impact of tariffs

“In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever: uncompromising quality, creativity at the heart of all development, and vertical integration, a guarantee of preserving unique savoir-faire. Despite a high comparison basis in the first quarter, the group achieved solid growth in sales, thanks to the trust of its customers and the commitment of the teams, whom I thank warmly”, said Axel Dumas, Executive Chairman of Hermès.

In the first quarter of 2024, the group’s consolidated revenue reached 4.13 billion euros. This represents an increase of 9% at current exchange rates and 7% at constant exchange rates, as compared to the same period last year, but a slowdown compared to the 18% growth recorded in the previous quarter.

Nevertheless, Hermès continues to outperform the sector and recently overtook LVMH in terms of market capitalisation.

Geographical Area

(at constant exchange rates unless otherwise indicated)

At the end of March, sales in Asia excluding Japan increased by 1% year-on-year to 1.97 billion euros, reflecting a high comparative base and the slowdown in traffic in Greater China since the end of the first quarter of 2024. In Japan, Hermès sales increased by 17% year-on-year to 421 million euros, thanks to the loyalty of local customers.

In the Americas, where the luxury group continues to show solid momentum, first quarter sales increased by 11% to 695 million US dollars, as compared to the same period last year.

In Europe excluding France, Hermès reported first quarter sales of 501 million euros, an increase of 13% on a comparable basis to the first quarter of 2024. In France alone, the group’s sales amounted to 357 million euros, an increase of 14% year-on-year.

The Other area, which mainly includes the Middle East, maintained its momentum with first quarter sales up by 14% over the same period last year to 185 million euros

Segment Highlights

Hermès said that the Leather Goods and Saddlery segment “achieved a robust performance” in the first quarter. In the three months to the end of March, sales in this segment increased by 10.0% year-on-year to 1.81 billion euros. The Ready-to-wear and Accessories segment followed, with a first quarter sales growth of 7% year-on-year to 1.15 billion euros.

Prices Increases

As reported by Vogue Business, during the company’s first quarter conference call, the luxury group announced that after increasing prices globally by between 6 and 7% earlier this year, it will increase prices across its different categories in the US on May to offset the impact of the new 10% tariffs.

“At this stage, the rules have not yet been finalised. As you know, however, since 9 April, we have been paying additional tariffs of 10%, which are the rates applicable within the European Union, and we will be fully compensating for the gross impact of these new customs duties”, said Eric du Halgouët, Hermès vice president of finance.

Image Credits: facesmag.com

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