What's Happening?
French luxury group Hermès has reported a 5 percent increase in turnover, reaching 3.9 billion euros, despite facing a challenging environment for the luxury sector. The company remains optimistic about
its future, maintaining its ambitious sales growth targets despite global economic, geopolitical, and monetary uncertainties. Hermès' sales were impacted by unfavorable exchange rates, but excluding these effects, they grew by 10 percent. Over the first nine months of the year, turnover rose by 6.3 percent to 11.9 billion euros. The company has announced the hiring of British designer Grace Wales Bonner to succeed Véronique Nichanian for its menswear collections, with her first show expected in January 2027. Hermès is also preparing to enter the haute couture market, although this is not expected before 2027.
Why It's Important?
Hermès' ability to maintain growth in a challenging economic climate underscores the resilience of the luxury sector and the brand's strong market position. The company's expansion plans, including the opening of new leather goods workshops in France, signal confidence in continued demand for luxury products. This growth is particularly significant in the Americas and Asia, where sales have been robust. The appointment of Grace Wales Bonner reflects Hermès' commitment to innovation and staying relevant in the competitive fashion industry. The planned entry into haute couture could further enhance Hermès' brand prestige and market reach.
What's Next?
Hermès plans to continue its expansion by opening three more leather goods workshops in France over the next three years. The company is investing over one billion euros in 2025 to support this growth. The transition in leadership for the menswear collections will be closely watched, as Grace Wales Bonner prepares to present her first collection in 2027. The luxury market will be observing Hermès' entry into haute couture, which could set new trends and standards in the industry.
