Hi everyone,
I want to talk about the $RMS.PA (Hermes International) earnings report and share my personal notes.
Hermès reported its Q2 2025 and first-half results on 30 July, delivering another strong set of numbers despite broad weakness across the luxury sector. The results underscore its brand’s resilience and keeps on showing me that it has a strong pricing power in a challenging macro environment.
Q2 Sales reached €3.9 billion, up 9% YoY at constant exchange rates.
H1 Revenue reached €8.0 billion, up 8% at constant rates (7% at reported rates).
Recurring Operating Income was €3.3 billion, up 6%, with a sector-leading 41.4% margin.
Adjusted Net Profit came in at €2.5 billion, up 6% YoY (excluding a one-off tax item).
Looking at the report, we can see that growth continues to be led by leather goods, with Leather & Saddlery up 14.8% and jewellery/home up 14.9%. Those results are offsetting declines in perfumes and watches. A 7% global price increase (plus an additional 5% in the U.S.) effectively neutralized new U.S.–EU tariffs, with no further hikes planned for now.
Against peers, Hermès stands out: while LVMH, Kering, and others reported declines, Hermès sustained its 41.4% operating margin, well above consensus expectations.
Overall, Hermès continues to differentiate itself through disciplined pricing, tight distribution, and brand equity. Its reliance on high-margin leather goods and loyal client base positions it as one of the most resilient names in global luxury. From a result perspective, Hermes is now my favourite luxury brand in our portfolio.
Hope that you are having a nice week.
Guillaume Serdan... Show More
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Fri Nov 14 2025 21:17:25 GMT+0000 (Coordinated Universal Time)
