Hermès International (RMS) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached €8.2 billion, up 6% at constant exchange rates and 2% at current rates year-over-year, with Q2 accelerating to +7% growth.

• Recurring operating income was €3.4 billion (41.0% of sales), slightly higher than H1 2025.

• Adjusted free cash flow increased by 18% to €2.2 billion.

• All regions except the Middle East posted growth; Americas (+15%), Japan (+11%), and Europe ex-France (+9%) led gains.

• All métiers except Perfume and Beauty delivered positive growth; Leather Goods and Saddlery (+10%), Silk and Textiles (+10%).

Financial highlights

• Gross margin reached 71.1%, up 0.4 points year-over-year, driven by strong inventory management and high sell-through rates.

• Recurring operating income was €3,351 million (41.0% of revenue).

• Net income group share was €2.2 billion, stable year-over-year; adjusted for exceptional tax, it reached €2.5 billion (30.7% of sales).

• Adjusted available/free cash flow stood at €2.2 billion, up 18% from H1 2025.

• Restated net cash at June 30, 2026, was €12.9 billion.

Outlook and guidance

• Maintains ambitious medium-term revenue growth target at constant exchange rates despite global uncertainties.

• Continued investment in all divisions and geographies, with new store openings planned in Chicago, Brooklyn, Rio, Chengdu, Geneva, and further global expansion.

• Focus on creativity, artisanal know-how, and sustainable development as pillars of long-term strategy.

• First couture collection to be presented in January 2027.