Hermès Q4 Sales Surge as US Handbag Demand Reaffirms Classic Luxury

Hermès closed the fourth quarter with about €4.09-4.1 billion in sales, a 9.8% increase at constant exchange rates that beat a Visible Alpha consensus of 8.4%. The upside came squarely from leather goods, where sales jumped 14.6% as demand for Kelly and Birkin bags continued to outpace expectations, leaving perfumes and beauty trailing with a 14.6% drop year-on-year.

The product mix shows a clear divergence: ready-to-wear and accessories rose 7.1%, the “other” category that includes jewelry and homeware climbed 12.9%, and watches were up 3.2%. That split helps explain why the group can post near-double-digit top-line growth even as categories tied to broader, middle-class spending soften.

Geography underwrote the quarter. Sales in the Americas, driven by the United States, rose 12.1%, beating expectations of around 9% and reflecting what Third Bridge’s Tang called “momentum in the United States is particularly strong, reflecting an underpenetrated market where the brand still has significant room to expand.” Japan rose 11.2%, Europe 9.5%, Asia excluding Japan about 8%, and the Middle East and other areas jumped 13.5%. WWD flagged strong openings in Scottsdale and Nashville and noted California recovery after last January’s fires as operational proof of U.S. strength. Axel Dumas underscored the point, describing a “very broad” customer base and geographic diversification in the U.S.

Leadership framed the result as resilience. “In an uncertain environment, Hermes is moving into 2026 with confidence, underpinned by its creativity and exceptional savoir-faire,” Axel Dumas said, and he pushed back on a gloomy global middle-class narrative: “It’s not true that the middle class is suffering all around the world. It is true in France, for sure, but not everywhere.” Management also signaled a tempering of price cadence, with Dumas noting “this year's price increases would be around 5-6%, down from a 6-7% rate in 2025,” a move the company attributed to currency shifts.

Operational advantages remain central to the story. Reuters and WWD highlighted Hermès’ large order backlog and tight control over production and distribution through its vertically integrated model, factors that have helped the group weather a sector slowdown better than many peers. The market took notice: full-year 2025 sales reached €16 billion, up 8.9%, and Hermès shares rose about 2% in early trading.

That outperformance left peers in relief contrast. LVMH posted roughly 1% Q4 growth to about €22.7 billion while Kering saw a 3% decline to €3.9 billion and Richemont logged an 11% rise to €6.4 billion. Bernstein’s Luca Solca summed the quarter succinctly: “Steady as it goes,” adding that the beat reflected acceleration in Asia-Pacific excluding Japan and persistent momentum in the Americas. With iconic handbags driving sales, a sizable order backlog and slower planned price rises, Hermès looks set to lean into U.S. growth as its lever for 2026.