Hermès Reports 9% Sales Growth Despite First-Half Profit Decline

Hermès reported a mixed financial performance in the first half of 2025, with net income declining slightly to around 2.2 billion euros despite a 7.1% increase in sales to 8 billion euros, driven largely by strong demand for its leather goods, particularly handbags. The company saw robust regional growth, with sales rising notably in the Americas, Asia (including a 17.6% jump in Japan), and Europe, while facing challenges such as a weaker dollar and new U.S. tariffs, which the company plans to offset with prior price increases totaling up to 12% in the U.S. Executive Chairman Axel Dumas noted no immediate plans for additional price hikes this year, highlighting the importance of careful production control to maintain exclusivity amid a slowing luxury sector. In the second quarter, Hermès's sales increased by 9% at constant exchange rates, outperforming rivals like Kering and LVMH, though some segments like fashion, silk, and perfume saw slower growth or contraction. Despite signs of some softness in demand from first-time buyers and a broader luxury slowdown, Hermès confirmed its medium-term revenue growth ambitions amid global economic and geopolitical uncertainties. The company's shares experienced some volatility following the report but have generally benefited from sustained consumer interest in its iconic products.