Hermes reports better-than-expected fourth quarter

(Sharecast News) - Hermès reported stronger-than-expected fourth-quarter sales on Thursday, as resilient demand in the United States and Japan helped the French luxury house outperform a broader sector slowdown and close the year on a firmer footing. Revenue for the final three months of 2025 rose 9.8% at constant exchange rates to €4.09bn, ahead of analyst forecasts of around €4.03bn and above consensus expectations for growth of about 8.4%.

The increase marked a slight acceleration from the 9.6% rise recorded in the previous quarter and capped an 8.9% gain in full-year sales.

Growth was led by the Americas, where revenue climbed 12.1%, surpassing expectations of roughly 9%, driven largely by the US market.

Demand for flagship products including Birkin and Kelly handbags, silk scarves and fragrances remained robust.

The leather goods division, which generates the bulk of group profits, delivered organic sales growth of 14.6% in the quarter.

For 2025 as a whole, Hermès posted operating profit of €6.57bn, equating to a margin of 41%, slightly ahead of market expectations of around 40%.

Net profit came in at €4.52bn, compared with €4.60bn a year earlier. The company proposed a dividend of €18 per share.

Chief executive Axel Dumas said the group was "moving into 2026 with confidence" and confirmed its medium-term guidance for sales growth at constant exchange rates, while cautioning that the economic and geopolitical backdrop remains uncertain.

Hermès said it planned to moderate price increases to around 5-6% this year, compared with 6-7% in 2025, citing currency movements.

Analysts said pricing discipline would remain central to sustaining growth, particularly as several rivals have slowed price hikes amid softer demand.

Separately, Dumas said he had rebuffed multiple attempts by financier Jeffrey Epstein to meet him in 2013 and 2014, describing Epstein as a "financial predator" who approached the company during its takeover battle with LVMH.

Dumas said he met Epstein only once at a workshop event in 2013 and declined subsequent requests for meetings, while the company also refused a request to design the interior of Epstein's private jet.

At 1118 CET (1018 GMT), shares in Hermès International were up 1.32% in Paris at €2,148.

Reporting by Josh White for Sharecast.com.