Hermès (EU:RMS) delivered stronger-than-expected fourth-quarter growth on Thursday, supported by resilient demand in the United States and Japan.
Revenue for the final three months of the year increased 9.8% at constant exchange rates, surpassing analyst projections of 8.4%, according to a Visible Alpha consensus. The Americas region stood out, rising 12.1%—well above expectations of roughly 9%—with the U.S. market leading the advance.
Chief Executive Axel Dumas said the company approaches 2026 with confidence, noting that planned price increases this year will average between 5% and 6%, compared with around 6% to 7% in 2025, reflecting currency movements.
“The Hermès model based on an exclusive and qualitative network, as well as strong vertical integration, has once again proven successful. This distinctive strategy has enabled the house to achieve robust revenue growth and strong performance,” Dumas said.
The group’s key leather goods division, which accounts for the majority of earnings, recorded 14.6% organic growth in the quarter. All business lines exceeded expectations except for perfume and beauty, where revenue declined 14.6%.
For the full year, operating profit reached €6.57 billion, representing a margin of 41%, slightly ahead of market forecasts of 40%.
“We would not expect to see material changes to consensus estimates for FY26E following these results, which we view as solid in the context of a dynamic industry environment,” said RBC Capital Markets analyst Piral Dadhania.
Hermès continues to outperform much of the luxury sector, including competitors such as LVMH Moët Hennessy Louis Vuitton SE. Its strategy of targeting ultra-wealthy clientele and maintaining strict control over supply has helped shield the brand from softer spending among more price-sensitive luxury consumers.
The company proposed a dividend of €18 per share.
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