Hermès Profits Shrink by 5% in H1, Sales Remain Robust

Hermès is letting itself be infected, a little, by the luxury crisis. The French maison ended the first half of the year with rising sales, although its net profit has shrunk. The company has managed to maintain its revenues up in all geographical areas, including Asia, in a context of weakness in the sector in which it operates.

The group, one of the few that is not being hit hard by the changing luxury scenario (which is affecting giants such as LVMH and Kering), ended the first six months of the year with revenues of €8.03 billion, an increase of 7.1% compared to the same period in 2024.

The company’s operating income, meanwhile, rose by 5.6% in the first half of the year to €3.32 billion. Net income, on the otherhand, fell by 5.1% to €2.24 billion.

Hermès reported declines in beauty and watch sales, while accessories sales continued to rise

The company attributed the drop in net income “to the exceptional contribution on the profits of large companies in France.“ “Excluding this exceptional contribution, the group’s net profit amounted to €2.5 billion, up 6% on the first half of 2024,“ the company detailed.

By markets, in the first half Hermès sales grew by 10.7% in Europe, while in Asia they rose by 4.2%, in America by 9.5% and in the Middle East by 16.3%. In the second quarter, group sales increased by 5.6%, with Europe up 8.6%, Asia by 3.1%, the Americas by 6.3% and the Middle East by 15.7%.

By division, in the first half of the year, sales of leather goods increased by 11.3%, while fashion sales rose by 4.3% and silk and textile sales by 2.6%. On the other hand, the perfumery and beauty division’s revenues fell by 4.1% and those of watches by 8.9%.

Regarding the outlook for the year as a whole, Hermès said that “in the medium term, despite economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious target for revenue growth at constant exchange rates”.