Revenue at Hermès rose 9% in the three months to September 2025, as demand from loyal clients and rising production capacity offset softer entry-level luxury spending.

Speaking to investors today (22 October), CEO Axel Dumas described the third quarter as “particularly solid”, citing the “authenticity” of the company’s craft-based model and loyalty of its customers as key drivers. Revenue for the first nine months reached €8bn (£6.94bn), as net profit fell 5% to €2.5bn (£2.17bn).

While entry-level customers have become more cautious, the company said its core clientele remains resilient.

“We see fewer first-time visitors, but our loyal customers continue to engage deeply with the house,” Dumas explained.

CFO Eric du Halgouët said the business remained “financially robust”, although he predicts currency fluctuations and raw-material inflation will likely be more visible in the second half.

Sales in Europe (excluding France) rose 13%, supported by strong local demand and tourism. France grew 9%, Japan 16% and Asia (excluding Japan) 3%, with a modest improvement in China. The Americas delivered 12% growth, driven by double-digit gains in the US.

Leather goods and saddlery led performance up 12% year-on-year, benefiting from new capacity and continued client loyalty. Ready-to-wear and accessories sales rose 6%, while silk and textile sales grew 4% on the back of new patterns and formats. Perfume and beauty declined 5% against a tough comparison period, while sales of watches and jewellery fell by 3%.

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Hermès continues to expand its manufacturing network, with plans to add four new leather workshops in France over the next four years.

“We pursue investment in production and supply security as part of a long-term strategy,” Dumas explained. “This is not about chasing volume, but maintaining quality and independence.”

The luxury brand also reinforced the value of its selective retail network, reopening stores in Florence, Macau and Taichung in Taiwan – alongside adding new boutiques in US cities Scottsdale and Nashville. Dumas said the network would remain “broadly stable” at around 230 stores globally, with larger footprints allowing more categories beyond leather to be shown.

“We are not increasing store numbers, but the visibility of our stores is growing,” he said.

Despite the “challenging environment” for luxury, the business made more than 500 new hires in the first half. The group’s French employment rate for people with disabilities reached 7.9%, exceeding legal obligations. Dumas said this formed part of the company’s commitment to “share the fruits of growth with those who make it possible.”

Hermès expects to maintain its investment pace into the final quarter, despite a volatile macroeconomic backdrop.

“We will pursue the year with confidence,” Dumas said. “Hermès remains guided by creativity, craftsmanship and independence.”