Hermès laughs off the crisis. Luxury giant posts spectacular profits

While major fashion empires are experiencing drastic declines, Hermès is not only emerging from the crisis unscathed but is also breaking sales records. What's the secret?

The luxury fashion house Hermès, to the detriment of other industry giants, is doing remarkably well, proving that a true luxury empire isn't built without dozens of brands in its portfolio. According to its latest financial report, the brand recorded a 9% increase in sales in the second quarter of 2025. The Birkin maker achieved sales of €3.91 billion, setting a new record.

Sign of the luxury fashion house Hermès / Shutterstock

Analysts are predicting a deepening crisis in the luxury goods market . Geopolitical shifts, disputes, weakening consumer sentiment, scandals involving luxury giants , and Donald Trump's wild ideas have caused luxury to experience its worst crisis in a decade. LVMH saw its profits drop by 22% in the first half of 2025, while its largest competitor, the Kering Group, is facing losses of nearly 50%. What does Hermès say? It's celebrating.

The highest sales growth was recorded in the Middle East, where growth reached a staggering 20.4% . Why? A favorable economy, affluent clientele, and new retail locations in Dubai and Riyadh . North America came in second with 12.3% . Europe maintained a stable growth rate of 9.1% , although in France the pace was more modest at 4.1%. Asia, on the other hand, achieved growth of 5.2% despite a challenging macroeconomic environment.

Sales, sales, but what about real profits ? Despite impressive sales results, Hermès' net profit in the first half of the year fell slightly, from €2.37 billion to €2.25 billion . According to Luxury Tribune, this decline was not due to operational weakness, but rather to the introduction of a temporary tax by the French government, imposed on major corporations to reduce public debt. Without this burden, the company would have recorded a 6% increase in net profit.

What's the recipe for success? After announcing a decline in sales in the first quarter of 2025, Hermès announced price increases for all products sold in the United States to offset losses resulting from new tariffs. The company implemented a 7% global price increase, with an additional 5% increase in the United States . This, however, didn't deter consumers and saved the brand from the crisis.

Hermès' operating model, dubbed " slow luxury," assumes controlled supply, a focus on artisanal quality , and fully integrated production. The brand doesn't compete with the number of stores; instead, it invests in expanding its own production facilities, planning new factories in France, including Loupes, Charleville-Mézières, and Colombelles. Hermès remains committed to its consistently implemented strategy and continues to inspire customer confidence.