Hermès Sustains Strong Growth in Q3 2025 Driven by Leather Goods
Hermès Maintains Momentum in Q3 2025
Led by Leather Goods
Hermès, renowned for its iconic Birkin and Kelly handbags, continued to demonstrate its dominance in the luxury market during the third quarter of 2025, reporting revenues of €3.9 billion—a 10% increase at constant exchange rates (5% at current). Robust demand across regions helped offset currency headwinds.
For the first nine months of 2025, reported sales reached €11.9 billion, up nearly 9% at constant exchange rates. All geographic regions contributed to the growth as Hermès further expanded its selective distribution network. The company stated that these results highlight the resilience of its integrated business model and the enduring global appetite for its craftsmanship-driven creations.
Executive Chairman Axel Dumas commented:
“In the third quarter, Hermès is maintaining its course, thanks to solid growth that reflects the strength of our model. We remain focused on navigating uncertainties, thanks to the loyalty of our customers and the commitment of our employees.”
Sales in France rose 9%, driven by strong performance in local boutiques, while Europe excluding France posted a 12% increase, supported by what Hermès described as exceptional client loyalty. Regional growth was further boosted by the reopening of the renovated and expanded Florence boutique and the Istanbul stop of Hermès’ traveling event, Hermès in the Making.
In the Americas, sales advanced 13%, with gains extending beyond Leather Goods to categories such as Ready-to-Wear, Silk, Jewellery, and Watches. Customer activity grew steadily across stores on both coasts, while new openings in Scottsdale and Nashville, together with the renovated Mexico City boutique, contributed to the region’s solid momentum.
In Asia excluding Japan, Hermès recorded a 4% increase, reflecting a modest improvement in Mainland China compared to Q2. Japan maintained its robust double-digit growth at 15%, supported by a loyal domestic customer base.
The Middle East and other markets achieved a 15% rise, driven by strong client relationships, a carefully curated retail network, and bespoke initiatives tailored to local preferences and events.
As for Hermès’ métiers, most continued to show strong growth in Q3 2025, though Perfume & Beauty and Watches still faced modest setbacks. The Leather Goods and Saddlery division continues to gallop ahead, climbing 13%, fueled by sustained demand across all regions and new launches such as the Tablier Sellier and Besace Trotting, alongside the return of the iconic Plume. Collections were further enriched with the Faubourg Express, P’tit Arçon, Médor, and Bolide Messenger bags. Heading into the peak season in Q4, Hermès reports that leather goods stocks are expected to remain robust, broadly in line with the same period last year.
The Ready-to-Wear and Accessories division grew 6%, reflecting an acceleration in Q3. Highlights included the women’s Spring-Summer 2026 collection showcased at the Garde Républicaine and the Fall-Winter 2025 presentation in Hong Kong. On the men’s side, the Spring-Summer 2026 runway show at the Palais d’Iéna received an enthusiastic response, underscoring Hermès’ continued commitment to its expanding menswear segment.
A creative transition is on the horizon following Q3, as Hermès announced that long-time Men’s Artistic Director Véronique Nichanian will present her final collection in January 2026. She will be succeeded by Grace Wales Bonner, whose debut collection is slated for release a year later. Hermès highlighted that Wales Bonner’s creative vision resonates with the Maison’s modern outlook and is expected to usher Hermès’ menswear into a new chapter—one that blends her distinctive aesthetic with the brand’s enduring heritage.
Silk and Textiles posted 4% growth, supported by ongoing creative momentum across designs and materials. The Other Hermès sectors — encompassing Jewellery and Home — rose 11%, sustaining their strong performance. Highlights included the unveiling of the eighth Haute Bijouterie collection, Les Formes de la Couleur, presented in July in Tokyo. On the Home front, progress continues on a new Tableware workshop in Couzeix, signaling further expansion in the category.
Hermès’ Perfume and Beauty division recorded a 5% decline, pressured by a high comparison base from last year’s strong performance, which included the launch of Barénia. The Watches métier also struggle, recording a 3% decrease amid ongoing market challenges. Despite this, Hermès is expanding its offerings with new versions of the Hermès H08 line and reinterpretations of its iconic Le temps suspendu complication across the Arceau and Hermès Cut lines. The Maison plans to further boost watch production capacity with the Noirmont site expansion, scheduled for completion by 2028.
During the Q&A session of Hermès’ presentation, the Maison addressed upcoming 2026 price adjustments, stating that it is still too early to provide specific figures. However, Hermès indicated that any increase would be lower than this year’s, with final budgets still under review. On the production front, Hermès confirmed that leather goods capacity will continue to expand in 2026, with output expected to rise by approximately 6–7%. This growth will be supported by the ongoing construction of workshops in Loupes (opening in 2026) and Charleville-Mézières (2027), along with plans for a new leather goods hub in Colombelles (2028). The Maison reaffirmed its commitment to maintaining workshop sizes between 250 and 300 craftspeople, ensuring that artisanal excellence remains at the core of its production.
Looking ahead, Hermès remains optimistic amid global uncertainties, anchored by its artisanal business model, selective distribution, and ever-evolving creative collections that uphold its legacy of craftsmanship. The Maison also enters a period of creative transition, anticipating Grace Wales Bonner’s 2027 debut — a moment set to usher in a fresh, contemporary chapter for Hermès.
Do you think Hermès is positioned to carry its momentum into 2026 and beyond? What are your thoughts on the Maison’s upcoming creative direction under Grace Wales Bonner? We’d love to hear your perspective.
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