Latest news with #Hermès
Hypebeast
an hour ago
- Business
- Hypebeast
Hermès Keeps Flying Higher Reporting 9% Sales Jump
Luxury fashion labelHermèshas reported that its Q2 earnings showed a 9% year-over-year increase in sales, continuing to demonstrate its strong performance amid the luxury sector's ongoing sales slump. The Birkin bag maker claims that its recent price increase strategy has been well-received by its customer base, enabling the company to pass on controversial US duties to its affluent clientele. According toBusiness of Fashion, Q2 sales reached €3.9 billion ($4.50 billion USD), roughly aligned with analyst expectations for a 10 percent rise. The label shared its report just days after US President Donald Trump brokered a trade deal with the EU, reducing a proposed 30% tariff on European goods to 15%. While other groups likeLouis VuittonparentLVMHandGucciparentKeringare still experiencing the negative impact of dampened demand for luxury goods, Hermès has touted its strong performance in 2024. Following a report of lower Q1 2025 sales, Hermèsannouncedplans to raise prices on all products sold in the United States to offset the losses imposed by new tariffs. 'We are going to fully offset the impact of these new duties by increasing our selling prices in the United States from May 1, across all our business lines,' said Finance Chief Eric du Halgouet to BoF in April. The company implemented a global price increase of 7%, with an additional 5% increase in the United States, where luxury demand has remained more consistent than in other markets, including China. With some bags starting at $10,000, the increase is no minor fee to pay, yet, the brand's highly exclusive distribution strategy has kept its magnetism strong, representing the highest heights of European luxury. Hermès also shared a plan to progressively strengthen its production capacities in April, entailing the opening of a Loupes factory next year, a Charleville-Mézières factory in 2027, and a Colombelles workshop for its Kelly and Constance bags in 2028. Customers can expect to see production increase as soon as this year as the label plans the opening of its Isle d'Espagnac factory in central France. Hermès shares have increased by 2% since the start of the year, beating out rivals like Cartier-owner Richemont. The rapidly evolving landscape eventually led to Hermès replacing LVMH as theworld's most valuable luxury stock, reaching a market cap of $276.3 billion USD in April. Stay tuned to Hypebeast for the latest fashion industry insights.
Fashion Network
3 hours ago
- Business
- Fashion Network
Hermès confirms heir no longer holds multibillion-euro stake
The enigma surrounding Hermès shares worth about €14 billion ($16.2 billion), once inherited by a member of the luxury brand's founding family, is finally starting to unravel. Hermès International SCA believes the family member, Nicolas Puech, has not held shares in the Birkin bag maker for some time, according to Executive Chairman Axel Dumas. His statement adds a new twist to a prolonged legal dispute — now further complicated by the recent death of Puech's former wealth manager. 'I've known for a long time that Nicolas Puech no longer holds his shares,' Dumas told reporters on Wednesday during an earnings call. He made his most detailed public comment on the matter and explained, 'That's why we started legal proceedings.' He also stated that he doesn't believe the company can recover the shares. The uncertainty around Puech's stake in Hermès has remained one of the most persistent questions following one of France's most high-profile corporate battles. Over a decade ago, Bernard Arnault — founder of luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE — revealed he had discreetly acquired a stake in Hermès. In response, the founding Hermès family united and successfully resisted the takeover attempt. The status of Puech's shares was never publicly clarified, even after Arnault's 2014 agreement to begin unwinding his position. The mystery deepened in 2023, when Puech accused his former wealth adviser, Eric Freymond, of mismanaging his assets. Freymond died in Switzerland last week. Puech, a fifth-generation heir, had been involved in a legal dispute with Freymond in Geneva over the management of his wealth, largely tied to approximately 6 million Hermès shares. The brand remains one of the most valuable luxury houses globally. Dumas described Freymond's death as 'tragic' and 'sad.' Lawyers for both Puech and Freymond were not immediately available for comment. The Hermès family, which includes over 100 members, is among Europe's wealthiest dynasties. If Puech, who resides in Switzerland, were still holding his stake, he would be the single largest shareholder in the 1837-founded house known for its handbags and silk scarves. Dumas himself is a sixth-generation descendant of the company's founder. His late uncle, Jean-Louis Dumas, who once served as CEO of Hermès, was also Puech's cousin.
Fashion Network
3 hours ago
- Business
- Fashion Network
Hermès confirms heir no longer holds multibillion-euro stake
The enigma surrounding Hermès shares worth about €14 billion ($16.2 billion), once inherited by a member of the luxury brand's founding family, is finally starting to unravel. Hermès International SCA believes the family member, Nicolas Puech, has not held shares in the Birkin bag maker for some time, according to Executive Chairman Axel Dumas. His statement adds a new twist to a prolonged legal dispute — now further complicated by the recent death of Puech's former wealth manager. 'I've known for a long time that Nicolas Puech no longer holds his shares,' Dumas told reporters on Wednesday during an earnings call. He made his most detailed public comment on the matter and explained, 'That's why we started legal proceedings.' He also stated that he doesn't believe the company can recover the shares. The uncertainty around Puech's stake in Hermès has remained one of the most persistent questions following one of France's most high-profile corporate battles. Over a decade ago, Bernard Arnault — founder of luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE — revealed he had discreetly acquired a stake in Hermès. In response, the founding Hermès family united and successfully resisted the takeover attempt. The status of Puech's shares was never publicly clarified, even after Arnault's 2014 agreement to begin unwinding his position. The mystery deepened in 2023, when Puech accused his former wealth adviser, Eric Freymond, of mismanaging his assets. Freymond died in Switzerland last week. Puech, a fifth-generation heir, had been involved in a legal dispute with Freymond in Geneva over the management of his wealth, largely tied to approximately 6 million Hermès shares. The brand remains one of the most valuable luxury houses globally. Dumas described Freymond's death as 'tragic' and 'sad.' Lawyers for both Puech and Freymond were not immediately available for comment. The Hermès family, which includes over 100 members, is among Europe's wealthiest dynasties. If Puech, who resides in Switzerland, were still holding his stake, he would be the single largest shareholder in the 1837-founded house known for its handbags and silk scarves. Dumas himself is a sixth-generation descendant of the company's founder. His late uncle, Jean-Louis Dumas, who once served as CEO of Hermès, was also Puech's cousin.
Fashion Network
3 hours ago
- Business
- Fashion Network
Hermès posts growth well above the market in the first half
The French luxury brand Hermès reported on Wednesday a 5% decline in first-half net profit to €2.2 billion, impacted by an exceptional corporate contribution. However, sales rose by 7.1% to reach €8 billion. Excluding the exceptional contribution, 'net income, group share, amounted to €2.5 billion, up 6% on the first half of 2024,' according to the press release. Hailing 'solid first-half results in all regions,' managing director Axel Dumas stated in the release that he would 'continue to invest and recruit to ensure the continued success of the company.' Sales in the Americas rose by 9.5% to €1.45 billion 'in a more volatile context, driven by double-digit growth in the United States.' Regarding the newly announced 15% customs duties on exports to the United States, Dumas told reporters he was 'waiting for the precise rules of the game.' 'The latest announcements need to be refined,' he said, explaining that the rate stood at 4.7% earlier this year, with an additional 10% implemented in April. 'If the 15% includes the earlier 10% and the existing 5%, there's no reason to raise prices,' he said. Following the April tariff increase, Hermès raised its U.S. prices by 5%. 'There's another subject that's just as important, which is the falling dollar,' Dumas added. 'We have a dollar that has fallen a lot, and that has as much impact, if not more, than the tariffs.' In Asia excluding Japan, group sales were up 1.5% at €3.57 billion. 'I don't see any fundamental change at the moment in the sales atmosphere in China, which remains buoyant for us,' Dumas noted. In Japan, sales surged by 17.6% to €815 million. In Europe, excluding France, sales increased by 12%, surpassing the billion-euro mark. Sales in France rose by 8.7% to €740 million. Sales in leather goods and saddlery — the group's core business — climbed by 11.3% to €3.58 billion. Clothing and accessories rose by 4.3% to €2.25 billion. Sales of perfumes and beauty products declined by 4.1% to €248 million, while watch sales fell by 8.9% to €281 million. Paris, July 30, 2025 (AFP)
Fashion Network
3 hours ago
- Business
- Fashion Network
Hermès confirms heir no longer holds multibillion-euro stake
The enigma surrounding Hermès shares worth about €14 billion ($16.2 billion), once inherited by a member of the luxury brand's founding family, is finally starting to unravel. Hermès International SCA believes the family member, Nicolas Puech, has not held shares in the Birkin bag maker for some time, according to Executive Chairman Axel Dumas. His statement adds a new twist to a prolonged legal dispute — now further complicated by the recent death of Puech's former wealth manager. 'I've known for a long time that Nicolas Puech no longer holds his shares,' Dumas told reporters on Wednesday during an earnings call. He made his most detailed public comment on the matter and explained, 'That's why we started legal proceedings.' He also stated that he doesn't believe the company can recover the shares. The uncertainty around Puech's stake in Hermès has remained one of the most persistent questions following one of France's most high-profile corporate battles. Over a decade ago, Bernard Arnault — founder of luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE — revealed he had discreetly acquired a stake in Hermès. In response, the founding Hermès family united and successfully resisted the takeover attempt. The status of Puech's shares was never publicly clarified, even after Arnault's 2014 agreement to begin unwinding his position. The mystery deepened in 2023, when Puech accused his former wealth adviser, Eric Freymond, of mismanaging his assets. Freymond died in Switzerland last week. Puech, a fifth-generation heir, had been involved in a legal dispute with Freymond in Geneva over the management of his wealth, largely tied to approximately 6 million Hermès shares. The brand remains one of the most valuable luxury houses globally. Dumas described Freymond's death as 'tragic' and 'sad.' Lawyers for both Puech and Freymond were not immediately available for comment. The Hermès family, which includes over 100 members, is among Europe's wealthiest dynasties. If Puech, who resides in Switzerland, were still holding his stake, he would be the single largest shareholder in the 1837-founded house known for its handbags and silk scarves. Dumas himself is a sixth-generation descendant of the company's founder. His late uncle, Jean-Louis Dumas, who once served as CEO of Hermès, was also Puech's cousin.
