Luxury is in the spotlight on the stock market following the results of the sector's big names. All eyes are on Paris, where the quarterly results of Hermès, which loses almost 4% at 2.283 euros per share and Kering, which instead gains 4,05% at 222,05 euro.
Hermes: Profits drop 5%, but revenues rise to €8 billion.
The French luxury giant that produces the famous Birkin bag recorded a turnover in the first half of 2025 profits of 2,2 billion euros, down 5% due to the exceptional contribution required of large companies in France. Without the exceptional contribution, net income would have been €2,5 billion, up 6% compared to the first half of 2024. Recurring operating income was €3,3 billion, up 6% year-on-year. Revenues are rising, reaching 8 billion (+7,1%), with positive contributions from all geographic areas. Despite the negative exchange rate effect, the recurring operating profit margin was 41,4%, compared to 42% a year earlier. Free cash flow amounted to €1,8 billion.
This is, write the experts at Barclays, a "overall performance above expectations”, with the EBIT margin for the first half of 2025 “beating consensus, coming in at 41,4% versus the expected 40,4%. However, earnings per share first half results were in line with consensus, due to lower-than-expected extraordinary items”.
Geographically, Hermes has recorded double-digit growth in all areas, except Asia-Pacific and France. "In our view," Barclays writes, "APAC is still suffering from the weakness of the Chinese consumer, although Hermes has been less affected than its competitors by the lack of Chinese tourists in Japan, thanks to its strong exposure to local customers.
Hermès: Tariffs impact US prices
Hermès outperformed its competitors by recording a second quarter 9% increase in sales to $3,9 billion, thanks to the continued appetite among affluent shoppers for the French company's coveted $10.000 Birkin bags. The company's executive chairman, Axel Dumas, said no further price increases are expected this year, following a 7% overall increase globally and an additional 5% in the United States, where the company said it wanted to completely relocate the impact of tariffs on their customers. In a phone call with reporters, Dumas said the price increases would likely be enough to offset the 15% tariffs agreed upon between the Trump administration and the EU.
Results in line with expectations for Kering
In the six months ended June 30, Kering saw thenet profit fell by 46% to 474 million of euros. The rRevenues, on the other hand, fell by 16% to 7,6 billionIn the second quarter of 2025, revenues amounted to €3,7 billion, down 18%. Direct retail sales decreased 16%, in line with the first quarter of 2025. Trends in North America (-10%) and Asia-Pacific (-19%) improved compared to the first quarter, while Western Europe (-17%) and Japan (-29%) slowed, "primarily due to a sharp decline in tourism," the company noted in a statement. Recurring operating margin fell to 12,8%, compared to 17,5% in the same period of the previous year.
The main challenge for Kering is to relaunch Gucci sales, its flagship Italian brand which alone represents almost 50% of the group's turnover and two-thirds of operating profitability: Gucci's sales are decreased by 26% in the semester, at 3 billion, compared to over 4 billion a year earlier. In the second quarter, Gucci reported a 27% drop in sales, stopping at 1,46 billion, in line with forecasts.
Barclay's analysts emphasized that "EBIT exceeded expectations by 4%, with an EBIT margin of 12,8%, compared to the 12,2% forecast. All brands and divisions delivered EBIT results above expectations, except Gucci, which missed the consensus by 4%." According to the experts, "Kering's EBIT beatout ends a long string of market disappointments. However, it's important to note that the improvement was driven by smaller divisions, while Gucci remains under pressure."
For Barclays, "the impact it will have will be central the new CEO Luca De Meo”, officially in office since September 15. “We think that the stock can be supported in the short term by the wait for the new Gucci collections and the arrival of the new CEO De Meo”, confirms Equita, also referring to the fact that the Gucci's creative director, Demna, will present the new complete collection in September, arriving in stores in the first quarter of 2026, while the fashion show will be in March.
Luxury on the Stock Exchange
Looking at other stocks in the sector, still in Paris lvmh earns over 2%, while in Milan Moncler salt by 1,2% and BRUNELLO CUCINELLI travels around parity. In London you shop on Burberry (+1,42%) and in Zurich Richemont recovers after the morning's losses. In Hong Kong Prada closed down 1,47%.
