Luxury fashion house Hermes has reported a consolidated revenue of €4.13bn ($4.70bn) in the first quarter (Q1) of 2025 (FY25), marking a 9% rise at current exchange rates and a 7% increase at constant exchange rates compared to the same period in the previous year.
The company witnessed growth across all regions where it operates.
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The Asian market, excluding Japan, saw a modest increase of 1% to €1.97bn, despite facing a high base for comparison from the previous year and reduced traffic in Greater China since the end of the first quarter in 2024.
Meanwhile, Japan experienced 17% sales jump, reaching €421m in Q1 FY25, attributed to the strong patronage of domestic customers.
Sales in the Americas rose by 11%, continuing the strong performance seen in the last quarter of 2024, with the US showing robust activity in March.
Sales in Europe, excluding France, rose by 12.7% to €501m over the quarter, while France itself saw a 14% rise, buoyed by steady demand from locals and an influx of tourists.
The Middle East, categorised under ‘Other’ geographical areas, maintained its positive trajectory with a 14% increase in sales.
By the end of March 2025, Hermes observed growth across all its business lines except for Watches and Perfume and Beauty.
The Leather Goods and Saddlery division reported a 10% rise, propelled by continuous demand and new additions to their collections such as the Médor and Mousqueton bags.
The Ready-to-wear and Accessories division saw a 7.2% increase, while Silk and Textiles enjoyed a 4.5% uptick. Conversely, the Watches division faced a 10% decline in sales.
Hermès executive chairman Axel Dumas said: “In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever: uncompromising quality, creativity at the heart of all development, and vertical integration, a guarantee of preserving unique savoir-faire.
“Despite a high comparison basis in the first quarter, the group achieved solid growth in sales, thanks to the trust of its customers and the commitment of the teams, whom I thank warmly.”
Despite current economic, geopolitical, and currency fluctuations globally, Hermes maintains an optimistic medium-term outlook for revenue growth at constant exchange rates.
In October last year, Hermès faced renewed legal challenges from US consumers who allege that the French luxury brand requires customers to make additional purchases before allowing them to buy its Birkin bags.
