Hermès continued to record steady top-line growth in the fourth quarter, driven by strong demand for its signature leather goods, scarves and fragrances, the French luxury house said on Thursday.
On a currency-adjusted basis, sales of items including Birkin and Kelly bags, silk scarves and perfume rose 9.8% in the quarter versus a Visible Alpha analyst consensus of 8.4% growth. The Americas region - dominated by the United States - outperformed with sales up 12.1%, above expectations of around 9%.
Chief Executive Axel Dumas summed up management's view plainly, saying the group was "going into 2026 with confidence." He added that the company plans to implement price increases of about 5-6% this year, a moderation from the 6-7% rate applied in 2025, and attributed the slower pace in part to shifts in currency.
Hermès' leather division, which is responsible for the bulk of the group's profit, posted organic revenue growth of 14.6% in the period. For the full year, the company recorded operating profit of 6.57 billion euros, equating to a 41% operating margin - slightly ahead of estimates that had placed the margin at 40%.
The board approved a dividend of 18 euros per share.
Analysts noted that the extent of price increases Hermès applies to its affluent customer base will be an important determinant of the company's growth trajectory, with some peers having slowed or stopped price hikes in response to weakening sales. Hermès, by contrast, has benefited from a combination of clients who are comparatively insulated from inflation and a significant backlog of orders, factors that have helped it navigate the wider luxury sector slowdown more robustly than many rivals.
The group specifically highlighted robust sales in the United States and Japan as a material contributor to the quarter's outperformance. The company also provided a dollar-to-euro reference in its release: $1 = 0.8431 euros.
Investment note included in the original release:
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