Hermès runs on the stock market after 2025 results exceed market estimates
Consolidated revenue was EUR 16 billion, up 5.5% at current exchange rates, and net profit was EUR 4.5 billion, up 5.5%
Hermés beat market estimates in the fourth quarter and the stock celebrated on the stock exchange. In Paris, the shares surged more than 3% before falling back slightly. Hermès ended the fourth quarter with organic sales growth of +9.8%, beating consensus (+8.4%) by 136 basis points. The performance brought organic growth for the full year to +8.9%, compared to market estimates of +8.5%. The outperformance in the quarter was driven by a sequential acceleration in Asia Pacific excluding Japan (+8% versus +5.3% consensus and +6.2% in Q3 2025) and a continuation of the positive trend in the Americas.
Profitability also surprised positively: the gross margin and operating margin for the second half of 2025 were 213 and 263 basis points above expectations respectively, bringing the levels for the full year 2025 to 71.1% and 41.1% respectively.
The 2025 budget
The group ended 2025 with consolidated revenue of €16 billion, up 9% at constant exchange rates and 5.5% at current exchange rates compared to 2024. Recurring operating profit stood at EUR 6.6 billion, or 41% of sales, marking an increase of 7%. Net profit attributable to the group reached €4.5 billion, up 5.5% excluding the exceptional profit contribution from large companies in France, in line with the sales trend.
In the fourth quarter, sales amounted to EUR 4.1 billion, an increase of 10% at constant exchange rates, in continuity with the previous quarter. Growth was solid in all regions, despite a particularly high comparison base. Europe, Japan, the Americas and the Middle East recorded double-digit increases.
"The Hermès model, based on an exclusive and qualitative network and strong vertical integration, has once again proven its effectiveness. This distinctive strategy has enabled the Maison to achieve sustained revenue growth and solid performance. I warmly thank the Hermès teams, who share our commitment to uncompromising quality, and our customers for their loyalty. In a context of uncertainty, Hermès faces 2026 with confidence, strengthened by its creativity and exceptional savoir-faire," comments Axel Dumas, Hermès executive chairman.
