Hermes' Sales Continue to Grow — Update

By Andrea Figueras

Hermes stayed optimistic amid hopes of a sustained luxury rebound this year after ending 2025 with higher sales.

The French luxury company booked revenue of 4.09 billion euros ($4.86 billion) for the last three months of the year, 9.8% higher than in the same period a year earlier at constant exchange rates. The increase in sales during the quarter, which comprises the key Christmas shopping season, showed an upward trend compared with the previous three months, when Hermes booked a 9.6% rise.

Analysts had forecast sales of 4.03 billion euros, according to a FactSet poll of estimates.

The company has managed to achieve high-single digit revenue growth in all quarters of 2025, leaving the full-year increase at 8.9% to 16 billion euros. Currency fluctuations represented a hit of 515 million euros on revenue, it said.

Hermes' results seem solid in the current luxury environment, RBC Capital Markets analyst Piral Dadhania wrote in a note to clients.

Luxury companies have until late last year faced falling sales, a downturn that was especially harsh in the crucial Chinese market. In the back half of the year, the industry started to see glimmers of recovery, but a comeback in China remains essential for a sustained recovery.

Despite the difficult environment for the sector, Hermes managed to ride out the storm as its main customers have ample cash to spend on high-end goods. Other brands targeting the wealthiest shoppers, such as Brunello Cucinelli, also performed better than those exposed to less-rich consumers like Kering's Gucci.

In light of the difficult context in China, the U.S. emerged as the key market. "The U.S. market is doing very well," Hermes Chief Executive Axel Dumas said.

Earlier this week, The Wall Street Journal reported that Hermes acquired two adjoining properties on Beverly Hills' famed Rodeo Drive. "We don't need no more stores [in the U.S.], but bigger ones," the CEO said on Thursday.

Dumas said in an earnings call that it seems too early to give an indication of this year's performance, as the Lunar New Year, which kicks off on Feb. 17, has a significant impact on results. Nevertheless, the CEO noted that the group hasn't seen any deterioration in trends.

For this year, the group intends to raise prices by 5% to 6% in order to offset costs. The company confirmed its medium-term guidance of sales growth at constant exchange rates, but added that the economic and geopolitical environment remains uncertain.

"Hermes is moving into 2026 with confidence," Dumas said.

Shares rose 1.8% to 2,158 euros in European midday trade.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

February 12, 2026 06:53 ET (11:53 GMT)