Hermes quarterly sales boosted by strong US demand

Luxury group Hermes boosted revenues by 10 per cent in the fourth quarter powered by wealthy US consumers, while the muted Chinese market showed signs of improvement.

Demand for the French group’s signature handbags led to sales growth of more than 10 per cent in every region except Asia-Pacific over the holiday season, taking overall sales for the three-month period to €4.1 billion (US$4.87 billion; S$6.15 billion), a year-on-year increase of 10 per cent at constant exchange rates, ahead of Visible Alpha analysts’ forecasts.

The luxury group’s leather goods division, its biggest by sales and profits, increased sales 14.6 per cent over the quarter as shoppers’ demand for its Kelly and Birkin bags continued to surpass expectations, despite a high base of comparison from the same period a year earlier. 

Hermes has weathered the downturn in the luxury sector better than most peers due to its ultra-wealthy clientele and strong demand for its premium bag models.

Executive chair Axel Dumas said: “In an uncertain environment, Hermes is moving into 2026 with confidence, underpinned by its creativity and exceptional savoir-faire.” 

However, sales of Hermes’ other product lines that are more exposed to middle-class shoppers, such as perfumes and its signature silk scarves, showed greater signs of strain in the final quarter of the year. Beauty and perfume sales fell sharply, down 14.6 per cent compared with the same period the previous year. 

Sales in the Americas, which are driven by the US, rose 12 per cent in the quarter as wealthy Americans continued to shop with aplomb. Analysts expect continued strong demand in the US will help power a luxury industry recovery in 2026, compensating for ongoing weakness in China. 

In the Asia-Pacific region, revenues increased by 8 per cent in the period, an acceleration from earlier in the year suggesting that luxury demand in Greater China was stabilising after two difficult years. In Hermes’ previous quarterly report, executives noted a “slight improvement” in China amid signs the market was stabilising.

Hermes shares rose 2.3 per cent in early trading on Thursday (Feb 12).

Hermes’ business in China has continued to grow over the past two years despite a sharp overall downturn in luxury demand there, which has led to falling sales for peers like LVMH and Kering. 

The company’s fourth-quarter results helped lift Hermes’s annual net profit by 5.5 per cent, to €4.5 billion.

Hermes’ “delivery confirms an impressive resonance with luxury shoppers globally”, wrote James Grzinic at Jefferies. “This superior top-line delivery is helping drive earnings stability at a time when foreign exchange headwinds continue to result in meaningful [earnings per share] declines in the broader sector.”

The high-end handbag maker overtook larger rival LVMH’s market capitalisation in April 2025 for the first time, briefly making it luxury’s biggest company by market value.

Adrienne Klasa © 2026 The Financial Times.

This article originally appeared in The Financial Times.