2025 H1 out
Hermès - 2025 first-half results
Hermès - PR - 2025 First Half Results
Hermes
Regarding regional development, I would note that Hermès customers have significantly more wealth and travel quite quickly from one place to another by plane.
Research-Based Comparison
- American Express, Visa & Euromonitor have reported that:
- Individuals with incomes exceeding €1M/year spend 20–80x more money on travel than middle-income individuals. Visa source
- They travel more often for work, leisure, and second home use.
- Many own several homes around the world, which significantly increases travel.
- UNWTO and Ipsos estimate that:
- The average European takes ~1.5 leisure trips/year, while an UHNWI (Ultra High Net Worth Individual) can take 10–15. UNWTO source
While browsing that travel data, I found this image. Americanexpress source
I have also noticed that Gen Z and millennials want valuable souvenirs that they can keep for a long time to remind them of their vacation. Leather products are perfect for this due to their durability. Leather belts, leather bags, etc. So this Super Luxury trend/Silent Luxury trend is not just limited to the super-rich. I would see the customer sector growing further, expanding to young streamers and influencers, those who make a good income.
Watches and perfumes were in negative development, but this was influenced by the strength of the comparison period, as well as the post-COVID watch boom. The watch sector is also in a production ramp-up phase, so this product area is not operating at full capacity.
In the perfume sector
Hermessence Oud Alezan
Barénia,
H24 Herbes Vives. Sold really well.
Terre d’Hermès Eau de Parfum Intense,
Rouge Brillant Silky (lipstick) were launched during 2025 H1, 3 products vs 2 products, so a -4% growth in the perfume and beauty sector is quite okay.
Defensiveness is clearly visible here, as profitability has barely decreased in 5 years.
Hermès is able to generate more free cash flow, even though sales grew moderately.
€4500 bonus for 25700 employees for last year’s work. Total €115.65 million
Overall, I think this was a good H1 report, considering that the Luxury sector is cyclically low.
If compared to others, the situation looks as follows.
Luxury companies’ growth in H1 2025 compared to peers:
overall.
- Hermès: +8 %
- LVMH (Fashion & Leather Goods): –7 %
- **Kering **: –16 %
- Gucci: –25 %
- Saint Laurent: –10 %
- Bottega Veneta: +2 %
- Richemont Group: +6 %
- Jewellery Maisons: +11 %
- Watchmakers: –7 %
Comparison to peers H1 2025 by Pareto’s rule, Hermès sectors covering 85.74% of Hermès’ results
-
Leather Goods and Saddlery
Hermès +12 %
LVMH (F&LG) –7 %
Kering (Gucci) –25 %
Bottega Veneta +2 % -
Ready-to-Wear and Accessories
Hermès +6 %
LVMH (included in F&LG) –7 % (estimate) Not itemized separately, but F&LG total –7 %
Kering –16–25 %
Moncler +5 % -
Other Hermès Sectors (Jewellery + Homeware)
Hermès +10 %
LVMH (Jewelry – Bulgari, Tiffany) ±0 %
Richemont (Cartier, Van Cleef) +11 %
Kering (jewelry & home) not itemized No significant own jewelry/homeware business
