PARIS: Luxury house Hermès has delivered robust financial results for the first half of 2026, with consolidated revenue reaching €8.2 billion, representing growth of 6% at constant exchange rates and 2% at current exchange rates compared to the same period last year.
The company’s recurring operating profitability remained strong at 41.0% of sales, while adjusted free cash flow surged by 18%, underscoring the brand’s resilient business model despite challenging global conditions, according to a statement.
Strong Regional Performance with Notable Growth in Americas and Japan
All geographical regions posted growth except the Middle East, which demonstrated remarkable resilience amid geopolitical instability. The Americas led the way with an impressive 15% growth, following an exceptional first quarter with solid, balanced expansion across all countries and product categories.
Japan recorded strong 11% growth, accelerating in the second quarter, supported by robust foot traffic and loyal local customers. The region saw the inauguration of a new store in Nagoya in June, following the expansion of the Hilton Plaza East store in Osaka in May.
Europe excluding France grew 9%, maintaining solid momentum across all countries. The highlight was the June opening of a new Hermès Maison at 166 New Bond Street in London – a sprawling 2,000-square-metre space spanning six buildings that showcases the house’s exceptional creativity and craftsmanship.
Asia excluding Japan grew 2%, driven notably by Greater China, with Korea delivering an outstanding performance. The region saw several strategic openings, including new stores in Hanoi (Vietnam) and Beijing’s Sanlitun district, along with the reopening of renovated Hong Kong Elements and Taipei Sogo Fuxing stores.
France posted 2% growth, with a solid acceleration in the second quarter driven by both local customers and a recovery in tourist traffic.
Leather Goods Lead Product Categories
The Leather Goods and Saddlery métier delivered the strongest performance with 10% growth, accelerating in the second quarter. New models including Cliquetis, Kelly Hobo, and Double Longe have been met with great success. The company continues to expand production capacity, opening a twenty-fifth leather workshop in Loupes (Gironde) in early April, with three additional workshops planned through 2030.
The Silk and Textiles sector also achieved 10% growth, with remarkable performance driven by abundant creativity and a rich palette of designs. Ready-to-wear and Accessories grew 2%, benefiting from notable improvement in the second quarter, while Other Hermès sectors (including Jewellery and Home Universe) grew 5%.
Perfume and Beauty declined 4% but continued developing its lines, with the launch of a new Jardin collection fragrance and a successful foundation line, Plein Air. The Watches métier remained stable overall but posted solid second-quarter growth.
Strong Financial Position and Cash Flow Growth
Recurring operating income reached €3.4 billion, slightly up from €3.3 billion in the first half of 2025. Consolidated net profit (group share) remained stable at €2.2 billion.
Cash flow from operating activities grew strongly by 16% to €2.7 billion, driven by effective inventory management and exceptional sell-through rates. Adjusted free cash flow reached €2.2 billion, up 18%.
After dividend distributions of €1.9 billion and share buybacks, the restated net cash position stood at €12.9 billion at the end of June 2026.
Sustainable Growth and Workforce Expansion
Hermès continued its commitment as a responsible employer, increasing its workforce by more than 600 people in the first half, including 300 in France. The group now employs 27,107 people worldwide, with 16,656 based in France.
The house distributed a €3,000 bonus to all employees worldwide for 2025, sharing the fruits of growth with those who contribute daily.
In sustainability news, Hermès successfully completed the first two steps of the Science Based Targets for Nature (SBTN) initiative and participated in the launch of the fourth Livelihoods Fund, continuing its long-standing commitment to biodiversity conservation and regenerative agriculture.
Looking Ahead
Axel Dumas, Executive Chairman of Hermès, commented: “In the first half of 2026, Hermès delivered a solid performance, which reflects the strong desirability of its 16 métiers and the trust of its clients. Convinced by the strength of our unique artisanal model and in control of our key balances, we look to the second semester with confidence.”
Despite economic, geopolitical, and monetary uncertainties worldwide, the group confirms an ambitious goal for revenue growth at constant exchange rates in the medium term.
The theme for the year, “Venture beyond,” invites discovery of new horizons and renewed curiosity – a fitting sentiment as the luxury house continues its long-term development strategy built on creativity, craftsmanship, and singular communication.
