China’s high‑net‑worth buyers lift Hermès’ sales

Hermès’ revenue surged 9.8% to 4.1 billion euros ($4.87 billion) in Q4 2025, the French luxury group reported Thursday morning in Paris, marking another quarter of significant sales growth in Asia, as the maker of ultra-luxury fashion and bags continues to resonate with wealthy shoppers in China. Quarterly sales in Asia excluding Japan, a market which includes Greater China, rose 8% for the three-month period, beating analysts’ estimates of a 8.4% gain. Growth in the region also accelerated from a 6.2% increase in the third quarter, consolidating the Birkin bag maker’s outperformance across the broader luxury industry and its continued attractiveness to China’s high-net-worth individuals — a cohort of approximately 1.85 million households with more than 6 million RMB ($867,898) in investable assets. “China remains on a steady path of improvement, more from high end rather than aspirational clients,” says Luca Solca, analyst at Bernstein. For the full-year, Hermès’ revenue amounted to 16 billion euros in 2025, up 9% at constant exchange rates. By category, leather goods and saddlery sales surged 13%, in line with the firm’s annual objective, while ready-to-wear and accessories sales rose 6%. The silk and textiles category grew 5%, thanks to a solid fourth quarter, while the Paris headquartered firm’s watches division returned to growth in the second half, ending the year with a 2% contraction in sales. The “other” Hermès sectors, which include jewelry and the home universe, jumped 11%, while perfume sales fell 8%, due to a tough comparable basis in 2024. “The backbone of Hermes’ business model is sound with elevated and non-replicable brand positioning, absolute price leader, supply chain advantages [including a] higher level of vertical integration and hand-made products vs peers, long-term consistency in strategy, management and execution, and exceptional financials,” says RBC Europe analyst, Piral Dadhania, Post-pandemic pull Ultra-luxury brands like Hermès and Brunello Cucinelli have continued to benefit from a post-pandemic rebound in high-net-worth spending. However, mounting macroeconomic headwinds is pushing confidence among China’s wealthy families to a 14-year low, according to a recent report from the Hurun Research Institute. The institute’s report showed that high-end consumption among luxury consumers fell to $224.4 billion, down approximately 5%. “Since 2025, China’s HNWIs have adopted a more rational and cautious approach to consumption and investment,” Rupert Hoogewerf, founder and chief researcher of the Hurun group writes in the report. Hurun forecasts a 10% decline in average material consumption budgets, down to 2.11 million RMB ($305,211) in 2026. Watches, jewelry, and collectibles are expected to see the largest reductions, the report noted. Considered the economy’s most forward-looking cohort, wealthy households' behavioral pivots often foreshadow changes that later ripple across the middle class and the wider market. The shift could be a forewarning for China’s broader consumption path. Hermès’ topline, however, remains resilient, thanks to the success of its in-demand exotic leather goods and trend-avoidant fashion collections, according to Axel Dumas, CEO of Hermès. “The Hermès model based on an exclusive and qualitative network, as well as strong vertical integration, has once again proven successful,” says Dumas, in his firm’s financial update on Thursday morning. “This distinctive strategy has enabled the house to achieve robust revenue growth and a strong performance.” A deceleration in HNWI spending isn’t affecting ultra-luxury rival Brunello Cucinelli either. In its most recent trading update last month, the Italian brand logged an 11.5% annual increase in sales, driven by U.S. and Asian appetite for its quiet luxury goods with sales in Asia increasing 15%. Discussing the results, company founder, Brunello Cucinelli echoed his firm’s “positioning in the highest luxury segment and the strength of an offering capable of generating desire, engagement, and an increasingly deep relationship with the final customer.” Beyond the product For China’s high-net-worth buyers of handbags, a division Hermès says it wants to grow by 6-7% per annum to 2030, it’s not just about quality or exclusivity – it’s the experience that counts, according to DLG and Re-Hub’s whitepaper, Inside China’s Handbag Market Reset. From private previews to early access and invitation-only events, bag shoppers are increasingly seeking moments that go beyond the product itself, including “loyal relationships” with brand advisors, the report added, as they look for true connection with the brands they invest in. In the earnings conference call, Dumas referenced the “Hermès in the Making” event in Shanghai and Taipei, “where more than 66,000 visitors stopped off to undercover Hermès craftsmanship and know-how.” Last year, Hermes also highlighted its “Les Formes de la Couleur” haute bijouterie collection in Hong Kong, a city it also chose to reshow its men’s ready-to-wear show in, after Paris. HNWIs still worth it Even as China’s high-net-worth consumers grow more cautious and seek even more meaningful brand experiences, the purchasing power of Asia’s wealthiest shoppers will continue to anchor growth strategies for global luxury groups in 2026. Last month, luxury behemoth LVMH announced it has increased its majority stake in Hermès rival Loro Piana, as the group looks to ramp up its focus on the ultra-luxury cashmere brand targeting HNWIs in the new year. The backing of Loro Piana also takes the pressure off LVMH fashion fixtures Louis Vuitton and Dior, which have been the backbone of sales success at the Parisian group, which posted a 1% downturn in sales for 2025. For Hermès, the group remains onboard with its current strategy, confirming “ambitious” revenue growth in the medium-term. The company also confirmed price increases of 5-6%. “The group is going into 2026 with confidence," said Dumas, adding his firm has plans to revamp its Beijing store, and several others in the new year in key cities across the globe. A strategy that proved successful in 2025: sow into the retail experience and reap client loyalty. In December, 2025, the company also reopened its newly expanded store within China’s Changsha IFS mall, unveiling a new luxury interior that embraces local culture and ups the ante on innovation. “Failure to convincingly innovate could push Hermès in a ‘classic corner,’ a possible risk if the aesthetics pendulum swings away from ‘quiet luxury,’” says Solca.

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China’s high‑net‑worth buyers lift Hermès’ sales