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Hermès reported sales up 9.6 per cent at constant exchange rates to €3.88 billion in the third quarter of 2025, a touch above expectations of 9.4 per cent — boosted by strong growth in the US. The leather goods and saddlery division slightly missed expectations, though, sending the share price down 4 per cent.
“In the third quarter, Hermès is maintaining its course, thanks to solid growth that reflects the strength of our model. We remain focused on navigating uncertainties, thanks to the loyalty of our customers and the commitments of our employees,” Hermès executive chair Axel Dumas said in a statement.
The results show a slight acceleration from Q2, when Hermes’s sales were up 9 per cent. In the third quarter, growth was led by the Americas (up 14.1 per cent), notably in the US, as well as Japan (up 13.8 per cent) and Europe (up 10.3 per cent). Asia-Pacific, excluding Japan, was up 6.2 per cent.
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Amid market challenges, Hermès said its loyal customer base — who continue to buy bags, jewellery and ready-to-wear — has allowed it to ‘hold up well in the maelstrom’.
During the earnings call on Wednesday, executive VP of finance Éric du Halgouë noted “a very slight improvement in Q3 this year compared to Q2” in China. He said: “There are still two encouraging signs, more related to macroeconomics. First, there is a stabilisation of the real estate sector in major Tier 1 cities in China. The second potentially positive element is the recovery of financial markets, both in Mainland China and Hong Kong. Lastly, during the first week of October, which was Golden Week in Mainland China, we saw more dynamic activity. While we can’t extrapolate this to the whole quarter, it remains an encouraging sign for Greater China.”
By category, leather goods and saddlery rose 13.3 per cent; other business sectors (including jewellery and homeware) were up 11.6 per cent; watches were up 8.8 per cent; ready-to-wear and accessories rose 6.6 per cent; and silk and textiles were up 4.1 per cent. Perfume and beauty were the exception, decreasing by 7.2 per cent.
Hermès’s earnings come on the heels of the announcement of Grace Wales Bonner as the maison’s creative director of menswear, succeeding Véronique Nichanian who’s stepping down after 37 years. Asked if that will translate into a change in style, du Halgouët replied: “It is in a spirit of continuity that we welcome Grace. She shares many similarities with Véronique, notably her passion for craftsmanship, her curiosity and her contemporary vision of fashion, which are valuable assets for beginning this new chapter in men’s ready-to-wear. She will bring her own personal touch.”
Regarding the weakness in fragrance sales, du Halgouët cited a tough comparison basis due to last year’s launch of the Barénia perfume. Hermès is working on introducing skincare “with a launch expected around 2028”, he added.