Hermes beats forecasts with strong quarterly sales growth

Luxury fashion house Hermes has reported stronger-than-expected revenue growth for the fourth quarter, driven by robust demand in key markets including the United States and Japan.

The French brand posted a 9.8% rise in sales compared with the same period last year, outperforming analyst forecasts of about 8.4% growth when adjusted for currency fluctuations. The performance was supported by strong demand for flagship products such as Birkin and Kelly handbags, silk scarves, and fragrances, News.Az reports, citing Reuters.

Sales in the Americas, led primarily by the U.S. market, increased by 12.1%, surpassing expectations of roughly 9%. Company executives said Hermes is entering 2026 with confidence, even as it plans to slow the pace of price increases this year.

Chief Executive Axel Dumas said prices are expected to rise by around 5–6% in 2026, slightly lower than the 6–7% increases seen in 2025. The moderation is partly linked to currency movements, while analysts say pricing strategy will remain crucial for sustaining growth.

Hermes’ leather goods division, the company’s main profit driver, recorded particularly strong momentum, with organic sales rising 14.6%.

For the full year, Hermes reported operating profit of 6.57 billion euros, delivering a profit margin of about 41%, slightly above market expectations. The company also announced a dividend of 18 euros per share.

Despite a broader slowdown across the global luxury sector, Hermes has remained resilient, supported by demand from ultra-wealthy clients and a large backlog of orders, which has helped cushion the impact of inflation and softer consumer spending trends.

News.Az 

By Aysel Mammadzada