Hermès reported a 9% year-over-year sales increase for Q2 2025, showing continued strength amid a broader luxury market slowdown. The French fashion house cited its global price hike strategy—including a 5% increase in the U.S.—as key to offsetting new U.S. tariffs. Q2 sales reached €3.9 billion ($4.5 billion), aligning with analyst expectations.
Hermès implemented the price changes starting May 1 following earlier guidance from Finance Chief Eric du Halgouet. While other luxury groups like LVMH and Kering have struggled with weakened demand, especially in China, Hermès maintained steady U.S. sales. Its bags, which often start around $10,000, have remained in demand due to limited availability and the brand’s exclusive image.
The company also revealed plans to expand production, with new factories set to open in Loupes (2026), Charleville-Mézières (2027), and Colombelles (2028), focused on iconic models like the Kelly and Constance. A new facility in Isle d’Espagnac is expected to open later this year.
Since January, Hermès shares have risen 2%, outperforming competitors like Richemont and helping it overtake LVMH as the world’s most valuable luxury brand with a $276.3 billion market cap as of April.
