• Hermès International: 2025 Half-year Results

    Source: Nasdaq GlobeNewswire / 29 Jul 2025 23:00:00   America/Los_Angeles

                                            

    Half-year information report as at the end of June 2025

    Solid Sales growth and Recurring operating income up 6%

    Revenue amounted to €8 billion
    (+8% at constant exchange rates and +7% at current exchange rates)
    Recurring operating income reached €3.3 billion (41.4% of sales)

    Paris, 30 July 2025

    The group’s consolidated revenue in the first half of 2025 amounted to €8 billion, up 8% at constant exchange rates and 7% at current exchange rates compared to the same period in 2024. All the geographical areas recorded growth. Recurring operating income reached €3.3 billion (41.4% of sales), up 6%.

    In the second quarter, sales reached €3.9 billion, increasing by 9% at constant exchange rates, an improvement compared to the first quarter. All the regions grew.

    Axel Dumas, Executive Chairman of Hermès, said: “The solid first-half results across all regions reflect the strength of the Hermès 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.”

    Sales by geographical area at the end of June
    (at constant exchange rates, unless otherwise indicated)

    At the end of June 2025, all the geographical areas posted growth. The qualitative development of the exclusive distribution network has continued.

    • Asia excluding Japan (+3%) posted growth in the second quarter in all the countries of the region, despite the difficult context. The region benefitted from the loyalty of local clients and the value strategy. In June, the Four Seasons Macao store reopened after renovation and expansion work, following the Taichung store in Taiwan at the end of March. In Thailand, the store in Bangkok’s Central Embassy mall reopened in January after renovation and expansion work. The Hermès in the Making traveling event was staged in Shenzhen in May, giving our clients the opportunity to discover the house’s exceptional savoir-faire and materials.

    • Japan (+16%) pursued its remarkable growth, driven by the loyalty of local clients and its qualitative distribution network.

    • The Americas (+12%) confirmed solid momentum in a more volatile context, driven by double-digit growth in the United States. In June, New York hosted the Mystery at the Grooms’ event, a joyful and interactive event showcasing the creativity of the house’s 16 métiers.

    • Europe excluding France (+13%) achieved solid growth supported by the loyalty of the local clients and dynamic tourist flows. France (+9%) benefited from strong growth in the group’s stores. For its 15th edition, the Saut Hermès celebrated its return to the Grand Palais in Paris with the victory of our partner riders. In Italy, the store in Florence reopened in February after being renovated and expanded.
    • The Other area (+17%), which mainly includes the Middle East, achieved a particularly robust performance.

    Sales by sector at the end of June
    (at constant exchange rates, unless otherwise indicated)

    At the end of June 2025, the Leather Goods and Saddlery and the Other Hermès sectors achieved noteworthy performances.

    • The Leather Goods and Saddlery métier (+12%) posted solid growth, in line with the trajectory for the year, thanks to the increase in production capacities and sustained demand across all geographical areas. Collections were enhanced with new formats such as the Faubourg Express, P’tit Arçon, Médor and Bolide Messenger bags. The increase in production capacities continued with the upcoming September inauguration of the leather goods workshop in L’Isle-d’Espagnac (Charente), and ongoing construction of the workshops in Loupes (Gironde) by 2026 and Charleville-Mézières (Ardennes) by 2027. Hermès has also announced the opening of a 10th leather goods hub in Normandy with a new site to be inaugurated in Colombelles (Calvados) by 2028. Hermès thus continues to reinforce its local anchoring in France through the development of employment and training.

    • The Ready-to-wear and Accessories sector (+6%) benefited from the success of the latest ready-to-wear collections. The women’s fall-winter 2025 collection was successfully unveiled in early March at the Garde Républicaine, followed by the second chapter of the collection in June in Shanghai. The men’s summer 2026 runway show, unveiled in Paris at the Palais d’Iéna in June was very well received.

    • The Silk and Textiles sector (+4%) pursued its growth, driven by the dynamic of formats, the richness of materials and the diversity of creations.

    • Perfume and Beauty (-4%) sales are to be compared with a second quarter last year which benefitted from the launch of the Barénia, Hermessence Oud Alezan and H24 Herbes Vives perfumes. The perfume collections were enhanced with the creation Terre d’Hermès Eau de Parfum Intense, and the Hermès Beauty line welcomed the new lipstick, Rouge Brillant Silky.

    • In a still challenging environment, the Watches métier (-8%) continued their development, notably with the success of the new versions of the Hermès H08 line and the Arceau Le temps voyageur. The house also unveiled, at Watches & Wonders in Geneva in April, two new expressions of its emblematic complication Le temps suspendu, featured in the Arceau and Hermès Cut lines. In early July, Hermès announced the strengthening of its production capacities with the expansion of its Noirmont watchmaking site by 2028.

    • The other Hermès sectors (+10%), which include Jewellery and the Home universe, recorded solid growth, driven by the house’s unique identity and creative momentum, in particular with the white gold jewellery line, Adage. The homeware collections were unveiled at the Salone del Mobile in mid-April, revealing the singularity and excellence of the house’s savoir-faire. At the end of May, Hermès also announced the laying of the first stone for the new Couzeix workshop dedicated to Tableware.

    Strong results in the first half of 2025

    Recurring operating income amounted to €3.3 billion, up by 6% from €3.1 billion in the first half of 2024. Despite the negative impact of currency hedging, recurring operating profitability reached 41.4% compared to 42.0% at the end of June 2024.

    Consolidated net profit group share amounted to €2.2 billion compared to €2.4 billion in the first half of 2024, due to the exceptional contribution on the profits of large companies in France. Excluding this exceptional contribution, net profit group share amounted to €2.5 billion, up by 6% compared to the first half of 2024.

    The cash flow from operating activities reached €2.3 billion, up by 4%, at a rate close to that of the operating income. After operational investments (€0.3 billion) and repayment of lease liabilities (€0.2 billion) the adjusted free cash flow reached €1.8 billion.

    After distribution of ordinary and extraordinary dividends of €2.7 billion, the restated net cash position amounted to €10.7 billion at the end of June 2025, compared to €12.0 billion at the end of December 2024.

    A sustainable and responsible model

    In line with its commitments as a responsible employer, the Hermès group continued to create employment, increasing its workforce by more than 500 people over the first six months of the year, including 300 new hires in France. At the end of June 2025, the group employed 25,700 people, 15,900 of whom are based in France. The house distributed in February a €4,500 bonus to all its employees worldwide for 2024, in order to share the fruits of growth with those who contribute to it on a daily basis.

    Hermès continues its commitments to diversity and the inclusion of people with disabilities: In France, the direct employment rate reached 7.90%, representing more than 1,000 employees.

    Hermès has continued to implement its initiatives to address climate change and preserve resources. Furthermore, Hermès supports the stakeholders in its value chain and continues to encourage their environmental and social initiatives.

    The company has once again been recognized at the Transparency Awards, standing out in the 'CAC Large 60' category for its exemplary practices in financial, non-financial, and ethical communication.

    Other highlights

    At the end of June 2025, currency fluctuations represented a negative impact of €77 million on revenue.

    Hermès International did not redeem any shares, excluding transactions completed within the framework of the liquidity contract.

    Outlook

    In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.

    In a more uncertain economic and geopolitical context, the group continues its development with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.

    Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, maintaining control over know-how and singular communication.

    Drawn to craft is the theme of the year. From the saddle stitch to the pencil stroke, everything at Hermès begins with drawing.

    Limited review procedures have been carried out on the condensed interim consolidated financial statements by the Statutory Auditors in accordance with applicable regulations.

    The half-year financial report, the press release and the presentation of the 2025 half-year results are available on the group's website: https://finance.hermes.com

    Upcoming events:

    • 23 October 2025: Q3 2025 revenue publication
    • 12 February 2026: 2025 full-year results publication
    • 15 April 2026: Q1 2026 revenue publication
    • 17 April 2026: General Meeting of shareholders

    FIRST HALF 2025 KEY FIGURES

    In millions of eurosH1 20252024H1 2024
        
    Revenue8,03415,1707,504
    Growth at current exchange rates vs. n-17.1%13.0%12.0%
    Growth at constant exchange rates vs. n-1 (1)8.1%14.7%15.1%
        
    Recurring operating income (2)3,3276,1503,148
    As a % of revenue41.4%40.5%42.0%
        
    Operating income3,3276,1503,148
    As a % of revenue41.4%40.5%42.0%
        
    Net profit – Group share2,2464,6032,368
    As a % of revenue *28.0%30.3%31.6%
        
    Operating cash flows2,7335,3782,829
        
    Operating investments3161,067319
        
    Adjusted free cash flows (3)1,8473,7671,776
        
    Equity – Group share16,60217,32715,052
        
    Net cash position (4)10,31911,6429,477
        
    Restated net cash position (5)10,72312,03910,033
        
    Workforce (number of employees) (6)25,69725,18523,874

    (1)   Growth at constant exchange rates is calculated by applying, for each currency, the average exchange rates of the previous period to the revenue for the period.

    (2)   Recurring operating income is one of the main performance indicators monitored by Group Management. It corresponds to operating income excluding non‑recurring items having a significant impact that may affect understanding of the group’s economic performance.

    (3)   Adjusted free cash flows are the sum of cash flows related to operating activities, less operating investments and the repayment of lease liabilities recognised in accordance with IFRS 16 (aggregates in the consolidated statement of cash flows).

    (4)           Net cash position includes cash and cash equivalents presented under balance sheet assets, less bank overdrafts which appear under short‑term borrowings and financial liabilities on the liabilities side. Net cash position does not include lease liabilities recognised in accordance with IFRS 16.

    (5)           The restated net cash position corresponds to net cash plus cash investments that do not meet the IFRS criteria for cash equivalents due in particular to their original maturity of more than three months, less borrowings and financial liabilities.

    (6)   Permanent + fixed‑term employment contracts with no length of service condition (23,242 published at the end of June 2024, excluding fixed-term contracts of less than 9 months, before the CSRD methodology change).

    * 31.2% in the first half of 2025 after restatement of the exceptional contribution on the profits of large companies in France.

    REVENUE BY GEOGRAPHICAL AREA (a)

      First halfEvolution /2024
    In millions of Euros 20252024PublishedAt constant exchange rates
    France 7406808.7%8.7%
    Europe (excl. France) 1,08897012.1%12.6%
    Total Europe 1,8281,65110.7%11.0%
    Japan 81569317.6%16.0%
    Asia-Pacific (excl. Japan) 3,5743,5211.5%3.0%
    Total Asia 4,3894,2134.2%5.1%
    Americas 1,4551,3299.5%11.7%
    Other (Middle East) 36231116.3%17.2%
    TOTAL 8,0347,5047.1%8.1%


      2nd quarterEvolution /2024
    In millions of Euros 20252024PublishedAt constant exchange rates
    France 3833684.1%4.1%
    Europe (excl. France) 58852611.7%12.6%
    Total Europe 9718948.6%9.1%
    Japan 39433617.4%14.7%
    Asia-Pacific (excl. Japan) 1,6031,6010.1%5.2%
    Total Asia 1,9971,9373.1%6.9%
    Americas 7607156.3%12.3%
    Other (Middle East) 17715315.7%20.4%
    TOTAL 3,9053,6995.6%9.0%

    (a) Sales by destination.


    REVENUE BY SECTOR

      First halfEvolution /2024
    In millions of Euros 20252024PublishedAt constant exchange rates
    Leather Goods and Saddlery (1) 3,5783,21511.3%12.4%
    Ready-to-wear and Accessories (2) 2,2552,1624.3%5.5%
    Silk and Textiles 4474362.6%3.5%
    Other Hermès sectors (3) 1,0569679.2%10.3%
    Perfume and Beauty 248259(4.1)%(3.8)%
    Watches 281308(8.9)%(7.9)%
    Other products (4) 1681577.2%7.5%
    TOTAL 8,0347,5047.1%8.1%


      2nd quarterEvolution /2024
    In millions of Euros 20252024PublishedAt constant exchange rates
    Leather Goods and Saddlery (1) 1,7651,58811.2%14.8%
    Ready-to-wear and Accessories (2) 1,1061,1010.4%3.8%
    Silk and Textiles 192194(1.2)%2.2%
    Other Hermès sectors (3) 51246211.0%14.9%
    Perfume and Beauty 119129(8.0)%(7.2)%
    Watches 130142(8.9)%(5.5)%
    Other products (4) 8283(2.0)%(0.4)%
    TOTAL 3,9053,6995.6%9.0%

    (1) The “Leather Goods and Saddlery” business line includes women’s and men’s bags, travel items, small leather goods and accessories, saddles, bridles and all equestrian objects and clothing.
    (2) The “Ready-to-wear and Accessories” business line includes Hermès Ready-to-wear for men and women, belts, costume jewellery, gloves, hats and Hermès’ shoes.
    (3) The “Other Hermès business lines” include Jewellery and Hermès home products (Art of Living and Hermès Tableware).
    (4) The “Other products” include the production activities carried out on behalf of non-group brands (textile printing, tanning…), as well as John Lobb, Saint-Louis and Puiforcat.

    REMINDER – 1ST QUARTER 2025

    REVENUE BY GEOGRAPHICAL ZONE (a)

      1st quarterEvolution /2024
    In millions of Euros 20252024PublishedAt constant exchange rates
    France 35731214.2%14.2%
    Europe (excl. France) 50144412.7%12.7%
    Total Europe 85775713.3%13.3%
    Japan 42135717.9%17.2%
    Asia-Pacific (excl. Japan) 1,9711,9202.7%1.2%
    Total Asia 2,3922,2775.1%3.7%
    Americas 69561413.3%11.0%
    Other (Middle East) 18515816.8%14.1%
    TOTAL 4,1293,8058.5%7.2%

    (a) Sales by destination.

    REVENUE BY SECTOR

      1st quarterEvolution /2024
    In millions of Euros  20252024PublishedAt constant exchange rates
    Leather Goods and Saddlery (1) 1,8131,62811.4%10.0%
    Ready-to-wear and Accessories (2) 1,1491,0618.3%7.2%
    Silk and Textiles 2562425.6%4.5%
    Other Hermès sectors (3) 5445057.6%6.1%
    Perfume and Beauty 129130(0.1%)(0.5%)
    Watches 151166(9.0%)(10.0%)
    Other products (4) 877417.5%16.5%
    TOTAL 4,1293,8058.5%7.2%

    (1) The “Leather Goods and Saddlery” business line includes women’s and men’s bags, travel items, small leather goods and accessories, saddles, bridles and all equestrian objects and clothing.
    (2) The “Ready-to-wear and Accessories” business line includes Hermès Ready-to-wear for men and women, belts, costume jewellery, gloves, hats and shoes.
    (3) The “Other Hermès business lines” include Jewellery and Hermès home products (Art of Living and Hermès Tableware).
    (4) The “Other products” include the production activities carried out on behalf of non-group brands (textile printing, tanning…), as well as John Lobb, Saint-Louis and Puiforcat.

    APPENDIX – EXTRACT FROM FIRST HALF CONSOLIDATED ACCOUNTS

    CONSOLIDATED INCOME STATEMENT

    In millions of eurosH1 2025H1 2024
    Revenue8,034 7,504
    Cost of sales(2,356)(2,206)
    Gross margin5,678 5,298
    Sales and administrative expenses(1,832)(1,682)
    Other income and expenses(519)(467)
    Recurring operating income3,327 3,148
    Other non-recurring income and expenses--
    Operating income3,327 3,148
    Net financial income148 141
    Net income before tax3,475 3,289
    Income tax(1,230)(927)
    Net income from associates26 16
    CONSOLIDATED NET INCOME2,271 2,378
    Non-controlling interests(25)(10)
    NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT2,246 2,368
    Basic earnings per share (in euros)21.43 22.61
    Diluted earnings per share (in euros)21.39 22.58

    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

    In millions of eurosH1 2025H1 2024 
    Consolidated net income2,271 2,378  
    Changes in foreign currency adjustments(501)42  
    Hedges of future cash flows in foreign currencies 1250 (17) 
    Items recyclable through profit or loss(250)25  
    Assets at fair value 1(25)30  
    Actuarial gains and losses 1-- 
    Items not recyclable through profit or loss(25)30  
    Other comprehensive income(275)55  
    NET COMPREHENSIVE INCOME1,996 2,433  
    • attributable to owners of the parent
    		1,976 2,423  
    • attributable to non-controlling interests
    		21 10  
    (1) Net of tax.   
     

    CONSOLIDATED BALANCE SHEET

    ASSETS

    In millions of euros30/06/202531/12/2024
    Goodwill203 228
    Intangible assets229 237
    Right-of-use assets1,724 1,786
    Property, plant and equipment2,945 2,980
    Financial assets1,059 1,050
    Investments in associates229 238
    Deferred tax assets887 929
    Other non-current assets183 159
    Non-current assets7,458 7,608
    Inventories and work-in-progress2,732 2,797
    Trade and other receivables461 478
    Current tax receivables45 28
    Other current assets366 398
    Financial derivatives446 132
    Cash and cash equivalents10,321 11,642
    Current assets14,370 15,476
    TOTAL ASSETS21,828 23,084

    LIABILITIES

    In millions of euros30/06/202531/12/2024
    Share capital54 54
    Share premium50 50
    Treasury shares(675)(670)
    Reserves14,375 12,464
    Foreign currency adjustments(145)355
    Revaluation adjustments697 471
    Net income attributable to owners of the parent2,246 4,603
    Equity attributable to owners of the parent16,602 17,327
    Non-controlling interests16 7
    Equity16,617 17,334
    Borrowings and financial liabilities due in more than one year30 61
    Lease liabilities due in more than one year1,695 1,781
    Non-current provisions34 33
    Post-employment and other employee benefit obligations due in more than one year181 173
    Deferred tax liabilities5 5
    Other non-current liabilities76 69
    Non-current liabilities2,021 2,120
    Borrowings and financial liabilities due in less than one year2 0
    Lease liabilities due in less than one year334 332
    Current provisions88 96
    Post-employment and other employee benefit obligations due in less than one year16 16
    Trade and other payables659 832
    Financial derivatives143 161
    Current tax liabilities715 773
    Other current liabilities1,235 1,419
    Current liabilities3,190 3,629
    TOTAL EQUITY AND LIABILITIES21,828 23,084

    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

    In millions of euros


    		Number of shares


    		Share capital


    		Share premium


    		Treasury shares


    		Consolidated reserves and net income attributable to owners of the parent


    		Actuarial gains and losses


    		Foreign currency adjustments


    		Revaluation adjustments      
    Financial investmentsHedges of future cash flows in foreign currenciesEquity attributable to owners of the parentNon-controlling interestsEquity
    As at 1 January 2024105,569,4125450(698)15,130(75)1895213215,201215,203 
    Net income----4,603----4,603284,631 
    Other comprehensive income-----(18)16630(111)67269 
    Comprehensive income----4,603(18)16630(111)4,670294,700 
    Change in share capital and share premiums------------ 
    Purchase or sale of treasury shares---28(64)----(36)-(36) 
    Share-based payments----142----142-142 
    Dividends paid----(2,642)----(2,642)(63)(2,705) 
    Other----(7)(2)---(9)3930 
    As at 31 December 2024105,569,4125450(670)17,163(95)355551(80)17,327717,334 
    Net income for the first half year of 2025----2,246----2,246252,271 
    Other comprehensive income for the first half year of 2025------(497)(25)250(271)(4)(275) 
    Comprehensive income for the first half year of 2025----2,246-(497)(25)2501,976211,996 
    Change in share capital and share premiums------------ 
    Purchase or sale of treasury shares---(5)(2)----(7)-(7) 
    Share-based payments----66----66-66 
    Dividends paid----(2,753)----(2,753)(12)(2,764) 
    Other----(5)-(3)--(8)0(8) 
    AS AT
    30 JUNE 2025    		105,569,412 54 50 (675)16,717 (95)(145)526 171 16,602 16 16,617  


    As at 1st January 2024105,569,4125450(698)15,130(75)1895213215,201215,203
    Net income for the first half year of 2024----2,368----2,368102,378
    Other comprehensive income for the first half year of 2024-----(0)4230(17)55156
    Comprehensive income for the first half year of 2024----2,368(0)4230(17)2,423102,433
    Change in share capital and share premiums------------
    Purchase or sale of treasury shares---(0)0----0-0
    Share-based payments----69----69-69
    Dividends paid----(2,641)----(2,641)(9)(2,650)
    Other----(0)----(0)2322
    AS AT
    30 JUNE 2024    		105,569,4125450(698)14,925(75)2315511415,0522615,078

    CONSOLIDATED STATEMENT OF CASH FLOWS

    In millions of eurosH1 2025H1 2024
    Net income attributable to owners of the parent2,2462,368
    Depreciation and amortisation of fixed assets, rights of use and impairment losses463383
    Foreign exchange gains/(losses) on fair value adjustments23(19)
    Change in provisions72
    Net income from associates(26)(16)
    Net income attributable to non-controlling interests2510
    Capital gains or losses on disposals and impact of changes in scope of consolidation(3)52
    Change in deferred tax(41)(5)
    Accrued expenses and income related to share-based payments6669
    Dividend income(27)(16)
    Other(0)(0)
    Operating cash flows2,7332,829
    Change in working capital requirements(403)(584)
    CASH FLOWS RELATED TO OPERATING ACTIVITIES (A)2,3302,244
    Operating investments(316)(319)
    Acquisitions of consolidated shares(56)(218)
    Acquisitions of other financial assets(46)(28)
    Disposals of operating assets10
    Disposals of consolidated shares and impact of losses of control-0
    Disposals of other financial assets70
    Change in payables and receivables related to investing activities(26)(80)
    Dividends received5119
    CASH FLOWS RELATED TO INVESTING ACTIVITIES (B)(384)(626)
    Dividends paid(2,764)(2,650)
    Repayment of lease liabilities(167)(149)
    Treasury share buybacks net of disposals(6)(0)
    Borrowing subscriptions90
    Repayment of borrowings(9)(1)
    Other 12
    CASH FLOWS RELATED TO FINANCING ACTIVITIES (C)(2,937)(2,799)
    Foreign currency translation adjustment (D)(331)33
    CHANGE IN NET CASH POSITION (A) + (B) + (C) + (D)(1,322)(1,147)
    Net cash position at the beginning of the period11,64210,625
    Net cash position at the end of the period10,3199,477

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