Thanks to its ultra-rich customers and large order backlog, the group has weathered the luxury sector’s sluggishness better than many of its rivals, steadily increasing revenue while sales at other luxury groups such as LVMH and Kering are under pressure.
“The group is going into 2026 with confidence,” CEO Axel Dumas said, adding that this year’s rate hikes will be around 5-6%, down from 6-7% in 2025, leading to a slower pace of currency fluctuations.
Chiara Battistini, a luxury equity analyst at JP Morgan, said the price increase Hermès imposes on its customers is a key question for the company’s growth outlook.
Many of its competitors have given pause to price hikes due to declining sales. Earlier this week, the CEO of Gucci owner Kering said a price hike “bonanza” had contributed to the company’s earnings slide after the pandemic.
Sales of the products, including Birkin and Kelly bags, silk scarves and perfume, grew 9.8% in currency-adjusted terms in the fourth quarter, compared with the analyst consensus set by Alpha of 8.4% growth.
Sales in the Americas region, particularly the United States, increased by 12.1%, beating expectations of about 9%, while in Asia excluding Japan – a region driven mainly by China – grew by 8%.Positive signs in China
In a call with analysts, Dumas said he sees positive signs in China, a major luxury market that has slowed significantly over the past few years due to the impact of the property crash on the country’s economy.
“I don’t see the situation as bad,” he said. “There are positive moves, especially the way they are handling the property crisis.”
Revenue in Hermès’ leather division, which makes up most of its profits, grew organically by 14.6%.
Hermes sales growth
