Hermès International (RMS) Q2 2025 earnings summary

Executive summary

• Revenue reached €8 billion in H1 2025, up 8% at constant exchange rates, with all regions and most business segments contributing to growth, especially Leather Goods and Saddlery.

• Recurring operating income rose 6% to €3.3 billion, with a strong operating margin of 41.4%.

• Net profit group share was €2.2 billion, impacted by an exceptional tax in France; adjusted net profit (excluding this) was €2.5 billion, up 6% year-over-year.

• The company continued to invest in production, supply chain, retail network, sustainability, and staff, with over 500 new hires in H1.

• Maintained strong customer loyalty and brand desirability despite macroeconomic and geopolitical uncertainties.

Financial highlights

• H1 2025 sales: €8,034 million (+8.1% constant, +7% current rates); Q2 sales: €3.9 billion (+9% constant rates).

• Recurring operating income: €3,327 million (41.4% margin); net profit group share: €2,246 million (28.0% margin); adjusted margin 31.2% after restatement.

• Adjusted free cash flow: €1,847 million; operating cash flow: €2,733 million.

• Gross margin: 71% of sales, stable year-over-year.

• Equity group share: €16.6 billion at June 2025; restated net cash position: €10.7 billion.

Outlook and guidance

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

• Continued investment in all divisions and geographies, including job creation, new workshop openings, and store expansions.

• Leather goods volume growth target: 6% for H2, 12% for full year including price increases.

• No major changes in store count expected; focus on larger, better-positioned stores.

• Confident in continued development, supported by integrated artisanal model and loyal clientele.