Hermès is increasing its production capacity. Photo: Matthias Balk / DPA (photo by Matthias … More
Hermès has again highlighted the weakness of lvmh By generating strong growth of 7% in the first quarter against the Louis Vuitton Owner’s 3% contraction (both and constant currency). And Despite Trump’s Changing Tariffs Threats, The French scarves to Leather Handbags House is looking at further robust growth this year.
Consolidated Revenue Figures and Hermès, Released TodayHit € 4.1 billion ($ 5.3 billion) for the first three months of the year. WHERES LVMH, Owned by Billionaire Bernard Arnault, did not see growth in any of its divisions leading to its Share Price Plunging Earlier this week, almost all of Hermès Big Revenue-driving segments Achieved Solid Q1 Growth.
The Family-Controlled Luxury Goods Company, famous for its timeless Birkin and Kelly Bags, was steered by its two biggest divisions, Leather Goods / Saddlery and ready-to-wear / accessories, which surged by 10% and 7.2% respectively. The two divisions accounted for almost 72% of Hermès Revenue in the first quarter and a big driver was demand for the new Médor and Mousqueton bag models.
The much smaller segments of Jewelry and Hermès Home Products (Grouped financially as ‘other’), and Silk / Textiles were also on a growth path, climbing by 6.1% and 4.5%. Only the smallest segment and hermès; Watches and beauty, were in decline, by 10% and 0.5% respectively. They accounted for 5.8% of the Company’s Revenue in Q1.
In a statement, Axel Dumas, Executive Chairman of Hermès, said: “Despite a high comparison basis in the first quarter, the group achieved solid sales growth. In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever.”
Those fundamentals include strict controls on Quality and Keeping Creativity at the heart of the Brand. Dumas added that vertical integration was also “a guarantee of preserving unique savoir-faire” and something that would like to be pursued further.
Hermès’ Strategy is based on what it calls creative freedom. This allows its artistic directors, every year, to come up with a theme and run with it; Often something connected to the House’s History which spans nearly 200 years. ‘Drawn to craft’ is the theme this year; “From the saddle stitch to the pencil stroke, everything and hermès begins with drawing” said the company.
Hermès is increasing production capacity
And an operational level, to guarantee the craftsmanship the brand is known for, Hermès has accelerated the securing supplies of materials, consolidating relations with its suppliers over time. The vertical integration that Dumas mentioned has been via partnerships and acquisitions. This also ensures traceability in its supply chains and supports its development strategy with regards to materials as well as techniques.
Geographically, Hermès’ Biggest Sales Region of Asia Pacific (Excluding Japan) was its weakest but still grew by 1.2% in the first quarter. Japan, had the best growth, topping 17%, while the Americas was the weakest outside Asia, but again has a respectable increase of 11%. The Company said that there had been “solid momentum” in the United States in March, before Trump’s ‘Liberation Day’ Tariffs Were announced on April 2.
As a sign of its confidence, hermès is increasing it’s production capacities. Later this year, the company will inaugurate l’isle-d’espagnac, a leather goods workshop in charente, while loupes in gironde, and charleville-mézières in ardennes, are scheduled to open in 2026 and 2027 respectively.
They will reinforce the Nine Centers of Expertise located across France, further understand the Brands Heritage. This Comes At A Time When Viral Videos About Chinese-Made Luxury Are Doing the Rounds On social media, and undermining some European brands.
Looking ahead to the rest of 2025, Hermès confirmed it would remain focused on “An Ambitious Goal for Revenue Growth and Constant Exchange Rates” but did not put a number on it. In A Statement The Company Added: “In a more uncertain economic and geopolitical context, the group has moved into 2025 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections, and the loyalty of clients.”
