Nothing and no one stops Hermès. Not even duties and the super euro. China improves, along with leather goods in the third quarter economic data released by the French luxury house. Analysts applaud, the market not so much. Shares were down after the data release.
Nothing and no one stops Hermès
Much is always expected of Hermès. And even in this quarter, the figures released by the French fashion house are more or less in line with analysts’ forecasts. Sales in the third quarter of 2025 were 3.88 billion euros, +4.8% at current exchange rates and +9.6% at constant exchange rates compared to the same period in 2024. This percentage is a slight improvement over the second quarter, with revenue from the “Maroquinerie-Sellerie” division, which generates half of the group’s total revenue, up 13.3% at constant exchange rates to 1.7 billion euros. This growth was lower than some analysts’ expectations. For the nine months, Hermès sales reached 11.92 billion, up 8.6% at constant exchange rates compared to the January-September period last year. Leather goods sales rose 12.6%.
Duties escaped
Despite fears that the Trump administration’s tariffs would affect consumption, also considering the resulting increase in prices for Hermès products, the region that includes the United States exceeded expectations, with sales up 14.1% at constant exchange rates. Regarding China, “a very slight improvement could be seen in the third quarter”, said Chief Financial Officer Eric de Halgouët, Reuters reports. De Halgouët confirmed Hermès’ ambitions in haute couture, “a project that won’t the see the light of day before 2027”, but is “in the pipeline”.
Analysts’ verdict
Following the release of Hermès’ results, Citi signals “a potential turning point for luxury. We believe the sector may enter a more favorable demand and earnings cycle, supported by stabilized macroeconomic conditions in key geographies”, writes chief analyst Thomas Chauvet in the report. For Bernstein’s Luca Solca: “The slight decline in sales of leather products compared to expectations could indicate that Hermès is holding back stocks for the end of the year, when they will have a tougher economic comparison with America”, WWD reports. Solca himself, RBC’s Piral Dadhania and Citi’s Chauvet expressed appreciation for Hermès’ results.
Market reactions
Instead, the stock market’s initial reactions are negative. Hermès stock was losing more than 4% on the Paris Stock Exchange. Analysts at Jeffries said some investors find the company’s traditional consistency “unexciting”, compared to reports of turnarounds at LVMH and Kering.
Photo from Hermès
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