Hermès Strengthens Its Luxury Reign with 5% Q3 Growth

Hermès continues its progress, undaunted by the luxury crisis. The French group closed the third quarter of the financial year with a turnover of €3.9 billion, an increase of 5% compared to the same period last year. At constant exchange rates, sales rose 10%, showing a slight improvement over the second quarter and a solid performance in Europe, America and Asia.

In the first nine months of the year, the group posted sales of €11.9 billion, up 6.3% in reported terms and 9% at constant exchange rates. Axel Dumas, executive chairman of Hermès, stressed that “the solidity of growth reflects the strength of the company’s model”, and that the maison maintains its course “thanks to the loyalty of its customers”.

All geographic areas closed the period in positive territory. Asia (excluding Japan) advanced 4%, with increases in all markets and a notable boost in China. The company has strengthened its commercial network with the reopening and expansion of stores in Bangkok, Taichung, Macao and Seoul. In the Japanese market, meanwhile, the group has grown by 15%, supported by the loyalty of its local customers.

Hermès has boosted its growth in Europe and America

In the Americas, sales rose 8.7% (12.5% at constant exchange rates) to 2,169 million euros, with openings in Scottsdale (Arizona) and Nashville (Tennessee), as well as the reopening of the Molière store in Mexico City. In Europe (excluding France), sales grew by 11.7%, while in the French market the increase was 9.3%. Overall, Europe contributed 2,864 million euros to total sales.

The leather goods and saddlery division continues to be the group’s main driving force, with a 13% increase in the first nine months of the year, to €5,278 million. The company highlighted the positive reception of new models inspired by the equestrian world, as well as the return of the classic Plume.

Hermès has also strengthened its production capacity with the opening in September of a new factory in L’Isle-d’Espagnac (Charente), which will employ 260 locally trained craftsmen. This plant is the fourth in the southwest of France and is part of an industrial plan that includes three new openings: Loupes (Gironde) in 2026, Charleville-Mézières (Ardennes) in 2027 and Colombelles (Calvados) in 2028. In total, the group has ten centers of excellence throughout the country.

Ready-to-wear and accessories grew 6% in the quarter, boosted by the collections presented at the Palais d’Iéna (Paris) and in Hong Kong, while silk and textiles advanced 4%, supported by the diversity of formats and materials. On the other hand, perfumery and cosmetics declined 5%.

The company is preparing for a creative handover at the head of its menswear collections

The company announced yesterday the arrival of British designer Grace Wales Bonner as creative director of men’s ready-to-wear, replacing Véronique Nichanian, who is ending a 37-year tenure. Nichanian’s last collection will be presented in January 2026 and Wales Bonner’s debut is scheduled for January 2027.

In a context marked by geopolitical and monetary tensions, Hermès maintains an “ambitious” medium-term growth objective, underpinned by its integrated artisanal model, its balanced distribution network and its control of know-how.

With net cash in excess of €10 billion and operating margins above 40% in the first half of the year, Hermès maintains its position as one of the most profitable groups in the sector.