France · Delayed Price · Currency is EUR Hermes Earnings Call Transcripts
Fiscal Year 2026
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Exceptional 2025 results were achieved with EUR 16 billion in sales and robust profitability, supported by global expansion, sustainability initiatives, and continued investment in production and talent. All resolutions, including a EUR 18 per share dividend, were approved.
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Revenue grew 6% at constant exchange rates in Q1 2026, with strong double-digit growth in Americas, Japan, and Europe (ex-France), but declines in France and the Middle East due to geopolitical issues. Leather Goods, Silk, and Jewelry performed well, while wholesale and travel retail faced headwinds.
Fiscal Year 2025
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Revenue grew 9% at constant FX to over €16B, with operating income up 7% and net profit up 5.5%. All major regions and most divisions saw growth, while investments in production, sustainability, and employee compensation continued. Outlook remains confident despite FX and macro headwinds.
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Q3 sales rose 10% at constant exchange rates, with broad-based growth across regions and segments. Leather goods, ready-to-wear, and jewelry led performance, while perfume and beauty declined. Confident outlook for Q4, with continued investment in capacity and store network.
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Sales grew 8% at constant rates to €8 billion in H1 2025, with operating income and net profit up 6%. All regions and most divisions contributed to growth, while investments in production, retail, and staff accelerated. Outlook remains confident despite macroeconomic headwinds.
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2024 saw robust growth with sales up 15% and net income up 7%, driven by strong performance across all regions and divisions except watchmaking. All resolutions, including board appointments, dividend distribution, and capital authorizations, were approved.
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Q1 2025 revenue rose 9% to €4.1B, with all regions growing and strong performance in leather goods, ready-to-wear, and jewellery. U.S. tariffs prompt a 10% price hike in May, while headcount and production capacity expand to support future growth.
Fiscal Year 2024
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2024 saw double-digit revenue and profit growth, driven by strong global demand, especially in leather goods and jewelry, despite currency headwinds and market volatility. Strategic investments, robust cash flow, and a resilient business model position the group for continued success in 2025.
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Revenue rose 14% at constant FX to €11.2B YTD, with all regions and most segments growing. FX headwinds, a new French tax, and slower China growth are being offset by higher average basket sizes and continued investment in production and retail.
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H1 2024 saw double-digit growth across all regions and divisions, with revenue up 15% at constant exchange rates and strong profitability despite currency headwinds. Investments in production, workforce, and sustainability continue, while guidance for leather goods growth and CapEx is maintained.