Hermès reported revenue of €8.16 billion for the first half of 2026, an increase of 6.1% at constant exchange rates and 1.6% at current exchange rates compared with the same period last year.
Recurring operating income increased slightly to €3.35 billion from €3.33 billion. Recurring operating profitability reached 41% of revenue, compared with 41.4% in the first half of 2025.
Second-quarter revenue reached €4.09 billion, increasing 6.7% at constant exchange rates and 4.8% at current rates. This represented an acceleration from the 5.6% constant-currency growth recorded during the first quarter.
The stronger second-quarter performance was supported by accelerating sales in France, Japan and the Middle East. Currency movements reduced first-half revenue by more than €360 million.
Net profit attributable to Hermès shareholders remained broadly stable at €2.24 billion, compared with €2.25 billion during the first half of 2025.
The result included the effect of France’s exceptional contribution on the profits of large companies. Excluding that contribution, net profit attributable to the group reached €2.5 billion, representing 30.7% of revenue.
Basic earnings per share were €21.36, compared with €21.43 in the prior-year period. Diluted earnings per share declined slightly to €21.32 from €21.39.
The Americas remained Hermès’ fastest-growing major region, with first-half revenue increasing 15.3% at constant exchange rates to €1.59 billion.
Second-quarter growth in the Americas reached 13.7% at constant rates. Hermès said the region delivered balanced growth across countries and product categories following an exceptionally strong first quarter.
Europe excluding France generated €1.17 billion in first-half revenue, increasing 8.8% at constant exchange rates. The company reopened its expanded Berlin store in May and inaugurated a new Hermès Maison on New Bond Street in London during June.
The London location spans six buildings and more than 2,000 square meters.
Revenue in France increased 1.8% to €753 million during the first half. Second-quarter sales rose 6.2%, reflecting improved tourist activity and continued demand from local customers.
Japan posted constant-currency growth of 11%, supported by customer traffic and local demand. Reported revenue declined 2.1% to €798 million because of exchange-rate movements.
Hermès expanded and renovated its Hilton Plaza East store in Osaka during May and opened a new store in Nagoya in June. Second-quarter constant-currency growth in Japan accelerated to 12.3%.
Asia-Pacific excluding Japan generated €3.53 billion in revenue. Sales increased 2.4% at constant exchange rates but declined 1.2% on a reported basis.
Hermès cited continued growth in Greater China and particularly strong performance in Korea. The company opened stores in Hanoi and Beijing’s Sanlitun district and reopened expanded locations in Hong Kong and Taipei.
The Middle East and other markets recorded a 4.2% constant-currency decline, with revenue decreasing 8.9% on a reported basis to €330 million.
However, the region’s constant-currency decline narrowed to 2.4% in the second quarter from 5.9% during the first quarter. Hermès attributed the improvement to local customers and its pricing and value strategy during an unstable geopolitical period.
Leather Goods and Saddlery remained the company’s largest business, generating €3.76 billion in first-half revenue.
Sales increased 9.8% at constant exchange rates, including second-quarter growth of 10.2%. Hermès highlighted demand for its Cliquetis, Kelly Hobo and Double Longe models.
The company opened its 25th leather goods workshop in Loupes, France, during April. Additional workshops are scheduled to open in Charleville-Mézières in 2027, Colombelles in 2028 and Les Andelys by 2030.
Hermès said the additional facilities will expand production while supporting employment and artisan training in France.
Silk and Textiles delivered constant-currency growth of 9.7%, with revenue reaching €469 million. Second-quarter growth accelerated to 12.2%.
Other Hermès sectors, which include jewelry and home products, increased 5.4% at constant exchange rates to €1.07 billion.
Ready-to-wear and Accessories generated €2.2 billion in first-half sales. Revenue increased 2% at constant exchange rates despite declining 2.5% on a reported basis.
The category improved during the second quarter, when constant-currency growth reached 3.6%. Hermès attributed the stronger performance to momentum in ready-to-wear and interest in its women’s fall-winter collection.
Watches were approximately stable at constant exchange rates during the first half, with revenue of €269 million. The category returned to constant-currency growth of 4.4% during the second quarter.
Hermès is expanding its watchmaking facility in Le Noirmont, Switzerland, with completion scheduled for 2028.
Perfume and Beauty was the only major Hermès product category to decline at constant exchange rates during the first half. Revenue fell 4.5% to €233 million, including a 9.5% decline during the second quarter.
The company continued investing in the category through new fragrances and the expansion of its Plein Air beauty line.
Cash generated from operating activities increased 16% to €2.7 billion, supported by inventory management and strong sales of recent collections.
Adjusted free cash flow increased 18% to €2.18 billion after €344 million in operating investments and €173 million in lease repayments.
Hermès ended June with a restated net cash position of €12.93 billion, compared with €12.77 billion at the end of 2025. The company distributed approximately €1.9 billion in dividends and spent €160 million repurchasing shares during the first half.
The company added more than 600 employees during the first half, including approximately 300 in France. Hermès employed 27,107 people at the end of June, with 16,656 based in France.
Hermès also distributed a €3,000 bonus to employees worldwide in February based on the company’s 2025 performance.
Despite continued economic, geopolitical and currency uncertainty, Hermès maintained its medium-term goal of delivering ambitious revenue growth at constant exchange rates.
The company said its outlook continues to be supported by its integrated artisanal production model, controlled distribution network, product creativity and loyal customer base.
KEY QUOTE:
“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.”
Axel Dumas, Executive Chairman of Hermès
