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 robust operating profitability and all regions except Perfume & Beauty and Watches showing solid momentum.

• Operating margin remained strong at 41%, with recurring operating income rising 7% to €6.6 billion.

• Net profit (group share) reached €4.5 billion, up 5.5% after restating for exceptional French tax contributions.

• Continued global expansion of the distribution network, significant investments in production capacity, and strong job creation, especially in France.

• Maintained a balanced business model with diversified product divisions and a resilient, well-distributed customer base across regions.

Financial highlights

• Revenue exceeded €16 billion, up 9% at constant exchange rates and 5.5% at current rates year-over-year.

• Gross margin improved to 71.1% from 70.3% in 2024.

• Operating cash flow was €5.6 billion, with adjusted free cash flow at €3.9 billion.

• Net cash position at year-end was €12.8 billion.

• Dividend per share increased to €18.00, including a €5 interim dividend.

Outlook and guidance

• Maintains a confident outlook for 2026 despite economic and geopolitical uncertainty, driven by integrated artisanal model and ongoing investments in production and retail.

• Ambitious medium-term revenue growth targeted at constant exchange rates.

• Plans to open the 25th leather workshop in Gironde and major retail expansions in Beijing, Geneva, and London.

• Expects continued price increases of 5-6% in 2026 to offset cost and currency pressures.

• Continued strategic investments in production, store network, and sustainability initiatives planned for 2026.