Hermès International (RMS) Q4 2025 earnings summary

Executive summary

• Revenue surpassed €16 billion in 2025, up 9% at constant exchange rates and 5.5% at current rates, with strong operating profitability and all regions growing except Perfume & Beauty and Watches.

• Operating margin remained robust at 41%, with net income group share at €4.5 billion, up 5.5% excluding an exceptional French tax contribution.

• Continued global expansion of the distribution network, now at 294 stores in 45 countries, with significant investments in production capacity and job creation, especially in France.

• Maintained a balanced business model with diversified product divisions and geographic resilience, supporting long-term growth.

• Recognized for environmental and social commitments, including major emissions reductions and high ratings from non-financial agencies.

Financial highlights

• Revenue exceeded €16 billion, up 9% at constant exchange rates and 5.5% at current rates, despite a negative FX impact of €500–515 million.

• Operating income rose 7% to €6.6 billion; net profit (restated) up 5.5%; business cash flow up 11%.

• Gross margin improved to 71.1% from 70.3% in 2024; recurring operating profitability reached 41%.

• Net income group share at €4.5 billion, up 5% after exceptional tax contribution.

• Adjusted free cash flow at €3.9 billion; net cash position increased to €12.8 billion.

Outlook and guidance

• Maintains confidence in continued growth despite economic and geopolitical uncertainty, leveraging integrated artisanal model and balanced retail network.

• Plans for further job creation and investment in production capacity, including opening the 25th leather workshop in Gironde in 2026.

• Several major store openings and enlargements planned for 2026, including Beijing, Geneva, and London.

• Price increases of 5-6% planned for 2026 to offset cost and FX pressures.

• Continued long-term strategy focused on creativity, know-how, and selective distribution.