Hermès grows across all global markets, but sees slower pace in France and China
Europe, excluding France, Japan, the Americas, and the Middle East, saw double-digit growth during the first half of the year and the second quarter. France and China were the only markets to post single-digit increases. Asia-Pacific excluding Japan showed the weakest performance, with first-half sales up 1.5% (+3% at constant exchange rates), totaling €3.5 billion (+0.1% reported; +5.2% at constant exchange rates in Q2).
Hermès remains confident in China's medium-term outlook, though the recovery remains uncertain. 'Spending continues to grow, but demand is not visibly increasing. The dynamism seen a few years ago has not yet returned,' said Dumas during a teleconference with analysts.
'For some time now, due to well-identified reasons — the real estate crisis, stock market instability, and global uncertainty — we've seen fewer Chinese customers, many of whom are saving rather than spending. Personally, I don't see any definite improvement,' he added, describing the current situation in China as 'wait-and-see.' Still, he noted Hermès was 'very fortunate to have grown in China last year and to have achieved growth in the first half.'
In France, first-half sales rose 8.7% to €740 million, with Q2 sales up 4.1%. The domestic market remains solid. 'Apart from minor cyclical effects, I don't see any break in the trend in France, which is one of the countries doing well,' said Dumas. Chief financial officer Eric du Halgouët added, 'In Europe and France, our stores are mainly visited by customers from the United States and the Middle East. We noted a slight temporary dip in France in June, but Middle Eastern customers have returned after recent periods of tension.'
In contrast to its competitors, Hermès has performed especially well in markets like Japan. Sales there rose 17.6% to €815 million in the first half (+16% at constant exchange rates), following an already strong +22% in the same period in 2024. Second-quarter growth reached +17.4% (+14.7% at constant exchange rates). 'Japan has a long history with Hermès. It was our first customer in the 1980s. We share a very strong and special relationship,' emphasized Dumas.
Thanks to strong local demand, Hermès is less dependent on tourist-driven traffic in Japan. Unlike other brands that shifted focus away from Japan in favor of other Asian markets, Hermès continued to invest locally. Today, it benefits from a well-established boutique network and resilient local teams. 'Our customers are quite loyal — to the stores, and often to their salespeople,' said Dumas.
A similar model is seen in South Korea, where Hermès enjoys strong loyalty and ongoing growth.
In the Americas, sales rose 11.7% in the first half (+9.5% reported) to €1.4 billion, and by 12.3% in Q2 (+6.5% reported), driven by double-digit growth in the United States. 'This is due to the Group's strong performance and the quality of our products and teams,' said Dumas, who also pointed to instability in the region. 'The U.S. remains volatile, with major differences from week to week and region to region. But it is one of the countries where all sectors beyond leather goods also perform very well.'
Commenting on the 15% customs duty applied to U.S. sales, Dumas said the company was awaiting details. 'General U.S. duties were 4.7% at the start of the year, with an additional 10% applied in April, bringing the total to 15%. If the new 15% figure includes what's already in place, there may be no need to raise prices further.' Hermès had already increased U.S. prices by 10% in May. He added: 'The falling dollar is just as important — if not more — than tariffs in terms of impact.'
In the 'Other' region — largely the Middle East — sales rose 16.3% in H1 (+17.2% at constant exchange rates) and 15.7% in Q2 (+20.4% at constant exchange rates), underscoring continued demand for luxury goods in Eastern markets.
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