Hermès reports 1.72 percent net profit decrease due to exceptional surtax

French luxury group Hermès announced on Thursday, February 12, 2026, a 1.72 percent decrease in its net profit for 2025, which fell to 4.5 billion euros (5.35 billion dollars). This decline was attributed to an exceptional surtax imposed on large companies by the French government to restore public finances.

Excluding this exceptional contribution, which amounted to 330 million euros in 2025, net profit increased by 5.5 percent compared to 2024, stated the group's executive chairman, Axel Dumas, during a discussion with journalists. The group's sales rose by 5.5 percent to 16 billion euros.

Setback every two years

“I cannot make a projection for 2026,” Dumas added. He noted that the industry has returned to a state where a “hitch” or regional stall occurs approximately every two years.

Dumas explained that while the post-Covid-19 period saw all regions operating simultaneously, the current environment mirrors the beginning of his career, where localized issues are frequent.

For 2026, however, the executive chairman sees “very strong growth” in the US and a “stable Europe”. He praised the results in Japan, attributing them to the resilience of his teams even in a difficult business climate.

Performance across core geographies

Sales in Asia-Pacific excluding Japan grew by 0.8 percent last year to 6.7 billion euros. Excluding currency effects, the increase was five percent. Dumas emphasised that the brand has never declined in the Greater China region, which includes mainland China, Hong Kong, Macau, and Taiwan, noting a strong fourth quarter in the area.

The Americas region experienced an “excellent year” with growth of 7.3 percent. This performance was supported by new store openings in Scottsdale, Arizona, and Nashville, Tennessee, alongside the renovation of the Molière boutique in Mexico City.

Europe also showed solid growth both in France, which rose by 8.9 percent, and across the rest of the continent, which increased by 10 percent. This was driven by the loyalty of local clientele and dynamic tourist flows.

Total sales from the Leather Goods and Saddlery division, the group's core business, grew by 9.5 percent to exceed seven billion euros. This growth was supported by sustained demand and increased production capacity.

Hermès will pay a bonus of 3,000 euros to all 26,500 employees worldwide in 2025, compared to 4,500 euros in 2024.

At the general meeting scheduled for April 17, 2026, a dividend of 18 euros per share will be proposed, up from 16 euros in 2024.

This article was translated to English using an AI tool.

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