The French luxury brand Hermès reported on Wednesday a 5% decline in first-half net profit to €2.2 billion ($2.53 billion), impacted by an exceptional corporate contribution. However, sales rose by 7.1% to reach €8 billion ($9.2 billion).

Excluding the exceptional contribution, “net income, group share, amounted to €2.5 billion ($2.88 billion), up 6% on the first half of 2024,” according to the press release.

Hailing “solid first-half results in all regions,” managing director Axel Dumas stated in the release that he would “continue to invest and recruit to ensure the continued success of the company.”

Sales in the Americas rose by 9.5% to €1.45 billion ($1.67 billion) “in a more volatile context, driven by double-digit growth in the United States.”

Regarding the newly announced 15% customs duties on exports to the United States, Dumas told reporters he was “waiting for the precise rules of the game.”

“The latest announcements need to be refined,” he said, explaining that the rate stood at 4.7% earlier this year, with an additional 10% implemented in April.

“If the 15% includes the earlier 10% and the existing 5%, there’s no reason to raise prices,” he said. Following the April tariff increase, Hermès raised its U.S. prices by 5%.

“There’s another subject that’s just as important, which is the falling dollar,” Dumas added. “We have a dollar that has fallen a lot, and that has as much impact, if not more, than the tariffs.”

In Asia excluding Japan, group sales were up 1.5% at €3.57 billion ($4.11 billion). “I don’t see any fundamental change at the moment in the sales atmosphere in China, which remains buoyant for us,” Dumas noted.

In Japan, sales surged by 17.6% to €815 million ($937 million).

In Europe, excluding France, sales increased by 12%, surpassing the billion-euro mark (€1 billion / $1.15 billion). Sales in France rose by 8.7% to €740 million ($851 million).

Sales in leather goods and saddlery — the group’s core business — climbed by 11.3% to €3.58 billion ($4.12 billion). Clothing and accessories rose by 4.3% to €2.25 billion ($2.59 billion). Sales of perfumes and beauty products declined by 4.1% to €248 million ($285 million), while watch sales fell by 8.9% to €281 million ($323 million).

(€1 = $1.15)

Paris, July 30, 2025 (AFP)