Hermès continues to deliver strong results. On Thursday, the French luxury house reported fourth-quarter sales for 2025, ending December 31, of €4.1 billion, a 9.8% year-on-year increase at constant exchange rates.

This exceeded consensus estimates of 8.4% growth and represents a slight acceleration from the previous quarter’s 9.6% rise. “Steady as it goes,” wrote Bernstein luxury goods analyst Luca Solca. “The quarter’s beat was driven by an acceleration across the Asia-Pacific region, excluding Japan, on a sequential basis, and in the Americas where strong momentum persisted.”

For the full year 2025, Hermès sales grew 8.9% year-on-year to €16 billion. The positive performance lifted its stock by 2% in early morning trading.

Hermès continues to outperform most of its luxury rivals. LVMH’s fourth-quarter sales grew 1% to approximately €22.7 billion, despite a 5% decline in its fashion and leather goods division. Kering’s sales fell 3% year-on-year to €3.9 billion in the same period. Richemont posted third-quarter sales growth of 11% to €6.4 billion.

Key growth categories for Hermès were leather goods and saddlery (up 14.6%); ready-to-wear and accessories (up 7.1%); and its “other” product lines, which include jewelry and homeware (up 12.9%). Watch sales rose 3.2% in the fourth quarter, while perfumes and beauty declined 14.6%.

Growth was driven by the Americas (up 12.1%), Europe (up 9.5%), Japan (up 11.2%), and “the other area,” which includes the Middle East (up 13.5%). Asia-Pacific sales increased 8% year-on-year.

In China, Hermès has continued to expand during the broader luxury downturn, unlike many peers. “In China, we’re seeing growth: leather goods are performing very well, acting as a pillar, while the two other business lines doing best are women’s ready-to-wear and jewelry,” said executive chair Axel Dumas during an earnings conference at the brand’s Rue de Sèvres store in Paris. Hermès currently operates 32 boutiques across China. “[The store network] is intended to grow a bit, at our own pace,” he added. Other store openings for the year will include London’s New Bond Street in June.

When asked about competition from local Chinese brands, Dumas commented: “I think the more success there is in our industry from different brands, the better. So I find it very interesting that China is developing brands in areas quite different from ours—in jewelry, Laopu is very different. It’s a different kind of know-how, quite ancestral craftsmanship, which is very interesting. Or Labubu, for example; I read a story in The New York Times asking if Labubu could have existed without the Birkin. It’s quite amusing—I don’t know the answer. So this Chinese dynamism, I find it rather positive than worrying.”

Dumas said plans to launch Hermès couture “are progressing.” “We’ve hired ateliers. We’ll be ready when we’re ready. What I saw was amazing—I’m excited,” he said.

Regarding the underperformance of the beauty business, Dumas noted the challenge “lies in perfume itself, rather than in makeup and beauty.” “Very frankly, I think there are certain things we can do better, and we are working on them,” he said. “Unlike the rest of the group, [this business] depends a lot on [wholesale] distribution, and not everyone performs as well as Hermès. Sometimes, our partners prefer to buy less to manage their stock, so we are continuing quite strongly with our perfume development strategy, which is to grow to the scale necessary to create autonomous strength.”The company plans to expand through its subsidiaries and launch products across three categories: perfumes, makeup, and soon, skincare. Dumas did not specify a timeline for the skincare or couture launches.

Hermès also announced it will raise prices by an average of 5% to 6% in 2026, citing higher production costs and aiming to counter unfavorable currency effects. This follows a previous price increase of 6% to 7% in 2025. In a note, Citi managing director Thomas Chauvet stated, “Hermès is well-positioned in 2026.”

Frequently Asked Questions
Of course Here is a list of FAQs about Herms reported 98 sales increase for the fourth quarter designed to be clear and conversational

Beginner General Questions

1 What exactly happened with Herms sales
Herms the luxury fashion brand reported that its sales revenue grew by 98 in the final three months of the year compared to the same period the year before

2 Is a 98 increase good For a company like Herms yes its very strong In the current economic climate and for a brand already at the top of the luxury market high singledigit or doubledigit growth is considered excellent and indicates resilient demand

3 Why is this news important
Its a key indicator of the health of the highend luxury market When Herms performs well it often signals that wealthy consumers are still spending confidently even if the broader economy is uncertain

4 Where did this growth come from
While Herms sells globally this growth was particularly strong in the AsiaPacific region and in Europe The brands iconic categories like Leather Goods and Saddlery and ReadytoWear were the main drivers

Advanced InvestorFocused Questions

5 How does this 98 growth compare to its rivals like LVMH or Kering
It outperformed many of its peers In the same period some other luxury giants reported slower growth or even declines making Herms performance standout This is often attributed to its extreme exclusivity and pricing power

6 What does at constant exchange rates mean and why is it mentioned
The 98 figure is likely reported at constant exchange rates This is a way to measure real sales growth by removing the distorting effect of currency fluctuations It shows the true operational performance not just whether the US dollar or Euro was strong or weak that quarter

7 Arent Herms products extremely expensive and hard to get How does that lead to growth
Thats precisely the strategy Their