Hermès Surpasses Peers With Q1 Revenue Growth

Hermès International posted first-quarter 2025 sales of €4.13 billion, up 7%, showing resilience despite a luxury market slowdown and missing analyst expectations. The company saw only 1% growth in Asia Pacific (excluding Japan) due to weak Chinese demand, while the U.S. and Europe rose 11% and 13-14% respectively, and Japan surged 17%. Leather goods performed strongly, while watches lagged and fragrance and beauty sales remained flat. CEO Axel Dumas credited Hermès' vertically integrated model and focus on quality and creativity for its relative strength. In contrast, LVMH reported a sales decline for the same period. The results underscore Hermès' continued appeal and operational strengths amid broader luxury sector challenges in 2025.