Hermès confirms ambitious growth targets amid economic uncertainty

French luxury group Hermès reported on Wednesday a 5 percent increase in turnover to 3.9 billion euros. The company remains steadfast despite a less favourable environment for the luxury sector in recent quarters.

Optimistic outlook

The maker of silk scarves and the famous Kelly and Birkin bags remains optimistic about the future. It confirmed its “ambitious” objective of sales growth “in the medium term”, despite “global economic, geopolitical and monetary uncertainties”.

The saddler and leather goods maker's sales were certainly affected by unfavourable exchange rates, as were those of its competitors. Excluding these currency effects, they grew by 10 percent, according to the group's statement.

Over the first nine months of the year, turnover rose by 6.3 percent to 11.9 billion euros.

To succeed designer Véronique Nichanian, who led Hermès' menswear ready-to-wear collections for 37 years, the group announced on Tuesday that it had hired British designer Grace Wales Bonner, who is in her thirties. Véronique Nichanian will present her final collection in January. “A collection will then be prepared by the studios” before Grace Wales Bonner's first show in January 2027, according to finance director Éric du Halgouët.

Hermès haute couture not before 2027

As for the project to launch into haute couture, it “will not come to fruition before 2027 at the earliest” but is “in preparation”, he stated on Wednesday during a press conference.

Sales in the third quarter of 2025 were more dynamic than in the second quarter “in Europe, America and Asia”. This was driven in particular by the “loyalty of the local Asian clientele”. In Asia, Hermès has renovated and expanded several stores.

Sales in the Americas are also performing well, up 7.2 percent to 714 million euros, as are those in Europe (plus 8.3 percent). In France itself, the growth is even stronger (plus 10.4 percent).

Leather goods and saddlery, Hermès' core business, remains solid. This is thanks in particular to “strong demand for iconic products” such as the Birkin or Kelly bags, as well as the “new collections”.

In 2025, Hermès is investing over one billion euros, highlighted du Halgouët. A 25th leather goods workshop opened this year in Charente, France, and Hermès plans to open three more in the country over the next three years.

This article was translated to English using an AI tool.

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