Hermes confirms outlook for rising sales in 2025
First-half sales rose by 7.1 percent to 8 billion euros ($9.2 billion), including double-digit growth in the United States.
Excluding currency effects, which had a negative impact of 77 million euros on revenue in the first half of the year, sales would have risen by eight percent.
Sales rose by three percent in the Asia region excluding Japan, the company saying sales had also risen in China, a key market for luxury firms that has been soft recently.
"I don't see at the moment a fundamental change in the sales climate in China, which remains favourable for us," chief executive Axel Dumas told journalists.
Net profit dipped five percent in the first half of the year to 2.2 billion due to an exceptional tax France levied on major firms, but Hermes said its recurring operating profit had climbed six percent to 3.3 billion.
Dumas said he was waiting for more details about the EU-US trade deal.
The company raised its prices by five percent after the United States introduced a global baseline 10 percent rate in April.
But if the 15 percent rate is a 10-percentage point increase from the roughly five percent rate that was in place before Trump took office, Dumas said "there is no reason to raise prices".
He also noted the effect of dollar-euro exchange rate.
"We have a dollar which has fallen a lot and that has as much if not more of an impact than tariffs," said Dumas.
Hermes confirmed its full-year outlook.
"In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates," it said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
2 hours ago
- Euronews
Timing of new data rules and plan to cut red tape baffles tech sector
Tech companies are confused about the timing of upcoming EU rules that aim to monetise data along with a new attempt to simplify rules affecting the sector, industry representatives have told Euronews. Most provisions of a new EU Data Act will come into effect on 12 September, just three months before the European Commission presents its digital simplification package: an effort to cut red tape and pull back on certain reporting obligations. In 2022, the European Commission proposed the new law to make sure that data created using smart devices - like connected cars or smart home equipment - is shared fairly. The EU wants to make sure the people using such devices benefit as more and more machines create huge amounts of data. Manufacturers of devices must design their products in a way that makes it easy for users to get and share their data under the Act. But there are some exceptions: if sharing data could reveal important business secrets, companies can temporarily stop the sharing. In emergency situations like floods or cyberattacks, private companies may be required to share their data with government agencies to help manage the crisis. Digital trade groups, however, say that uncertainty now surrounds the rules because of the simplification plans announced by EU Tech Commissioner Henna Virkkunen. The EU executive is currently gathering 'insights on where current policies can be simplified or streamlined'. In a statement to Euronews, the Business Software Alliance (BSA), a trade group which counts Amazon, Microsoft, Cisco and Oracle among its members, said that the timing of the simplification package 'raises the risk that companies will need to comply with the full obligations of the Data Act, only to see them potentially revised shortly thereafter'. Fewer than half of EU member states have designated or legally empowered national authorities responsible for implementing the new Data Act, according to BDA, which is now calling for the application of the law to be deferred to ensure legal clarity "until a coherent and effective implementation is found'. This was echoed by trade group Computer & Communications Industry Association (CCIA). CCIA Europe's Head of Policy and Deputy Head of Office, Alexandre Roure said 'Reopening the Data Act now would only create more uncertainty, and that's something companies can't afford. Including the Data Act in the Commission's upcoming digital simplification package would send mixed signals just as businesses are starting to adapt.' A spokesperson for the Commission said that 'there is no link between the planned Digital Simplification Omnibus and the national measures needed to give practical effect to the Data Act.' Rules in practice Besides the simplification efforts, most companies 'are still grappling with what the rules mean in practice,' said Roure. 'Clear guidance is urgently needed, especially on thorny issues like protecting businesses' trade secrets and how the Data Act interacts with the GDPR's data protection framework,' he added. BSA said also that 'significant concerns persist among industry stakeholders.' 'One major issue is the uncertainty over whether companies can recover the full value of contracts when a business customer terminates a fixed-term agreement prematurely. Additionally, the Act's aim to enforce interoperability across all cloud service providers may unintentionally hinder competition and innovation, potentially driving up costs for end users,' the statement added. The Commission said that while the Data Act applies directly in all 27 member states from 12 September, it also includes provisions that require national implementation measures such as on penalties and enforcement. Breaches of the Act can result in fines of up to €20 million or 4% of the company's total worldwide annual turnover, whichever is higher. 'The Commission is working closely with member states to support a timely and consistent implementation, including through the European Data Innovation Board where these national implementation measures will be discussed,' the spokesperson said.
France 24
2 hours ago
- France 24
South Korea removes anti-North Korean loudspeakers on border
01:44 30/07/2025 Japan's Fukushima plant evacuates workers as Russian quake sparks tsunami warnings Asia / Pacific 27/07/2025 Thai-Cambodian border clashes: Trump threatens to withhold trade deals until ceasefire Asia / Pacific 27/07/2025 China calls for shared AI future, offering tech to developing countries Asia / Pacific 27/07/2025 Taiwanese voters reject attempt to recall China-friendly lawmakers Asia / Pacific 27/07/2025 Thailand and Cambodia clash despite ceasefire hopes Asia / Pacific 27/07/2025 Thai-Cambodian border conflit: 200,000 thousand people displaced Asia / Pacific 27/07/2025 Thai-Cambodian border clashes continue despite Trump's ceasefire call Asia / Pacific 26/07/2025 Voters in Taiwan reject bid to oust China-friendly MPs in closely watched poll Asia / Pacific
Euronews
7 hours ago
- Euronews
Is this Swedish start-up the answer to Europe's ammunition shortage?
TNT, or trinitrotoluene, was first developed in the late 1800s in Germany. It was initially produced as a yellow dye and only 30 years after its invention were its explosive properties discovered. It is now the most commonly used military explosive. And, after years of underinvestment and rise in demand due to Russia's invasion of Ukraine, in short supply in Europe. Sovereign defence is a hot topic right now, with the EU committing billions of euros in a bid to increase the bloc's military capacity. Some research suggests Russian ammunition production capabilities outweigh Europe's 4:1, though others think it could be as much as 6:1, and although Europe is home to some ammunition production giants such as Rheinmetall, BAE and KNDS, they don't produce their own TNT. In this episode of The Big Question, Joakim Sjöblom, CEO and co-founder of Sweden Ballistics (SWEBAL), sat down with Euronews' Mared Gwyn Jones to discuss increasing Europe's TNT production capacity, along with the economic and security benefits. Does Europe produce any TNT? There is currently one TNT producer in Europe, which is Nitro-Chem based in Poland, and much of their product is exported away from the EU. In April 2025, Nitro-Chem signed a $310 million (€269m) deal to supply 18,000 tonnes of TNT over a 3 year period, destined for the US military. It's estimated that Russia has an annual resource of 4.5-5 million artillery shells per year–with around 2M coming from allies North Korea. Europe's output was roughly estimated at 600,000 shells in 2023 and working together with the US, the 2024 output was estimated at 1.2million shells. The NATO deterrence philosophy is linked to the idea that the likelihood of conflict is significantly reduced if both parties are equally armed. There's around 10kg of TNT in every shell. In order to produce a comparable amount to Russia, Europe would therefore need a supply of roughly 50,000 tonnes of TNT. While Nitro-Chem produces a good amount of TNT for Europe, supplies aren't currently sufficient, and the bloc relies heavily on Asian producers. Joakim fears the consequences of relying on external producers and only one local producer. 'If we go back to the COVID pandemic, we saw that the UK was producing vaccines but they were applying an export ban to it,' he recalls. 'If something were to happen in Poland, I am very certain there would be an export ban on TNT. Same goes for the Asian country that is currently exporting TNT. If there's a conflict in their proximity, there will be an export ban.' China is one of the world's largest producers of TNT, although NATO countries exclude the country from their supply chains. Increasing TNT production in Europe Joakim's company SWEBAL is bringing TNT production back to Sweden and aims to be producing 4,500 tonnes per year of TNT at full capacity, enough for 400-450,000 shells by 2027. Whilst this isn't enough to plug Europe's shortfall, Joakim described it as a 'significant contribution' nevertheless. 'So Sweden used to have TNT manufacturing until 1998,' Joakim explained. 'But during this time when there was a lot of demilitarisation, you could refurbish TNT from the shells that you were demilitarising and the mining industry could get TNT almost for nothing. So there was no commercial incentive to run a TNT manufacturing plant in the 90s.' 'And now we're paying the debt for that,' he added. 'So we are actually building our plant 30 minutes from the old plant in Sweden and we're also building just three kilometres from the Alfred Nobel Dynamite factory, so we're building on very historical ground.' With the right planning, Joakim is confident the growing industry could not only increase the bloc's security, it could provide economic benefits too. 'European member states are spending €200 billion every year on defence material. More than 60% of that is purchased from American producers. 'If those components were to be manufactured in the EU, we would create more than 10 million jobs,' he added. SWEBAL is aiming for all of the machinery, materials and production in their supply chain to be sourced within a 550km radius. Not only is this good for the local economy, it helps to reduce lead time. Asian imports currently take over two months to arrive, as shipping is redirected around the Horn of Africa to avoid the Suez Canal. Building a European defence industry But while SWEBAL invests in scaling up production, is there significant funding for the European explosives industry? The EU's ReArm Europe 2030 plan could release up to €800 billion over the next four years, which includes a €150 billion loan instrument called SAFE (Security Action for Europe) to help member states prioritise homegrown companies. However, Joakim said procurement orders are not coming in from armed forces and member states as quickly as they are being asked to scale up. 'The risk profile is suboptimal right now. The industry needs to carry a lot of risk, which is a benefit as a new player in the industry, because we don't have the same shareholders to cater for and we don't have the same stock price that we consider on a quarterly basis,' he told The Big Question. 'My job here is to make sure that we prevent a future conflict, and making short-term profit is not high on my agenda.' Joakim also highlighted another limiting factor for the industry in Europe. 'One of the biggest risks that I see in the European military is that we are not harmonised. So intercompatibility: the tanks of this country should be compatible with ammunition from another country.' 'And in order to achieve that, the market also needs to evolve… To use a famous quote, 'you either have an army or you have another country's army in your country'. So I think the price we pay if we don't do it is going to be even higher.' The Big Question is a series from Euronews Business where we sit down with industry leaders and experts to discuss some of the most important topics on today's agenda. Watch the video above to see the full discussion on European TNT production.
