Hermes projects robust sales growth for 2025
Hermès Posts Robust U.S. March Sales Ahead of Tariff Roll‑In
First‑Half Earnings Exceed Expectations
Hermès confirmed a full‑year sales growth target after reporting a 7.1 % rise to €8 billion ($9.2 billion) in the first half, driven by dual‑digit expansion in the United States. Excluding currency effects, revenue would have climbed 8 %.
Strong Asia Performance
- Sales in Asia, excluding Japan, grew 3 %.
- China, a key luxury market that has softened recently, continued to show growth.
CEO Axel Dumas said, “I don’t see a fundamental change in the sales climate in China, which remains favourable for us.”
Net Profit and Operating Margin
Net profit dropped 5 % to €2.2 billion because of an exceptional French corporate tax levy. Recurring operating profit rose 6 % to €3.3 billion.
Tariff Impact and Pricing Strategy
Hermès raised prices 5 % when the U.S. introduced a 10 % baseline rate in April. CEO Dumas noted that the upcoming 15 % rate—an increase of 10 percentage points from the roughly 5 % rate that was in place before Trump—does not necessitate further price hikes.
Dumas added that the dollar’s depreciation has an impact comparable, if not greater, than tariffs: “We have a dollar which has fallen a lot and that has as much if not more of an impact than tariffs,” he said.
Full‑Year Outlook Maintained
Despite global economic, geopolitical and monetary uncertainties, Hermès reaffirmed its ambitious revenue‑growth goal at constant exchange rates for the medium term.
Market Reaction
Hermès shares fell more than 4 % in midday trading, while the Paris CAC 40 index gained 0.4 %.
