Hermes International Societe en commandite par actions RMS
ParisLuxury and apparel brandsFinancials to Sep 30, 2026 · Updated Nov 11, 2026
Moat ranks
Balance sheet
| €B | Dec 31 | Jun 30 |
|---|---|---|
| Cash | 12.2 | 12.3 |
| Securities | 0.5 | 0.6 |
| Debt | 0.0 | 0.0 |
| Net cash | 12.8 | 12.9 |
| Equity | 18.8 | 19.0 |
- Debt / EBITDA
- 0.00×
- Debt / equity
- 0.00×
- Leases (6/30/26)
- €2.3B
- Diluted shares
- 105M
- Book value / share
- €181.17
- Price / book
- 7.4×
- Net cash / share
- €123.09
- Market cap
- €140.9B
- Enterprise value
- €128.0B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 halves |
|---|---|---|---|
| Revenue growth | 1.6% | -5.5 pts | |
| Operating margin | 41.1% | -0.4 pts | |
| FCF margin | 28.8% | +3.8 pts | |
| Capex / revenue | 4.2% | +0.3 pts | |
| Leather goods workshops | 25 | – | |
| Leather Goods and Saddlery revenue · 9/30/26 | €1.9B | – | |
| Ready-to-wear and Accessories revenue · 9/30/26 | €1.1B | – | |
| Silk and Textiles revenue · 9/30/26 | €214M | – | |
| Leather Goods and Saddlery sales at constant currency growth | +11% | – |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About RMS
Hermès designs, makes and sells luxury objects, mainly through its own stores. Leather Goods and Saddlery supplied 44.2% of FY2025 revenue and has the strongest advantage: a trusted brand, skilled artisans and controlled production.
- Brand Trust
Current collection demand and client trust support a strong leather-goods brand advantage; no definition-matched market share or wait-list metric is disclosed.
- Capacity Moat
Handmade production and long training cycles constrain supply; Hermes expands workshops gradually, preserving scarcity while adding capacity.
- Supply Chain Control
High vertical integration and in-house or exclusive workshops support quality control, resilience, and differentiation.
- Brand Trust
The house brand transfers demand to apparel and accessories, but seasonal fashion choices have low switching costs and H1 growth was modest.
- Dec 31, 2025 · Tax charge −€331M
The full-year exceptional French corporate-income-tax contribution reduced 2025 earnings by EUR331 million. It did not reduce operating profit. It was renewed in 2026, so excluding it does not mean future tax returns to the prior level. The annual amount is not a Q4-only charge.
- Dec 31, 2018 · Gain +€53M
The sale of the former Galleria store premises in Hong Kong added EUR52.7 million to 2018 operating profit. This property gain was not taxable and does not represent demand for Hermès products. The amount covers the full year, not only Q4.
Ownership
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On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share (€) | |||||||||||||
| Revenue | 49.49 | 52.77 | 56.89 | 65.52 | 60.91 | 85.57 | 110.56 | 128.07 | 144.57 | 152.35 | 153.62 | +13.3%/yr | |
| Cash flow | 14.02 | 15.27 | 18.50 | 19.87 | 15.65 | 32.44 | 39.87 | 41.28 | 48.97 | 51.16 | 54.69 | +15.5%/yr | |
| Earnings | 10.47 | 11.62 | 13.40 | 14.55 | 13.20 | 23.29 | 32.09 | 41.12 | 43.87 | 43.07 | 43.01 | +17.0%/yr | |
| Free cash flow | 11.53 | 12.75 | 15.52 | 15.32 | 11.38 | 27.37 | 34.94 | 33.09 | 38.81 | 40.11 | 43.37 | +14.9%/yr | |
| Capex | 2.49 | 2.52 | 2.98 | 4.55 | 4.27 | 5.07 | 4.94 | 8.19 | 10.17 | 11.05 | 11.32 | +18.0%/yr | |
| Dividends | 3.43 | 3.82 | 9.14 | 4.63 | 4.67 | 4.67 | 8.12 | 13.22 | 25.78 | 26.62 | 18.63 | +25.6%/yr | |
| Book value | 41.69 | 47.92 | 52.15 | 62.52 | 70.36 | 89.55 | 118.55 | 144.99 | 165.13 | 179.37 | 181.17 | +17.6%/yr | |
| Diluted shares (M) | 105 | 105 | 105 | 105 | 105 | 105 | 105 | 105 | 105 | 105 | 105 | -0.0%/yr | |
| Totals (€B) | |||||||||||||
| Revenue | 5.2 | 5.5 | 6.0 | 6.9 | 6.4 | 9.0 | 11.6 | 13.4 | 15.2 | 16.0 | 16.1 | +13.3%/yr | |
| Operating income | 1.7 | 1.9 | 2.1 | 2.3 | 2.1 | 3.5 | 4.7 | 5.7 | 6.2 | 6.6 | 6.6 | +16.2%/yr | |
| Net income | 1.1 | 1.2 | 1.4 | 1.5 | 1.4 | 2.4 | 3.4 | 4.3 | 4.6 | 4.5 | 4.5 | +17.0%/yr | |
| Free cash flow | 1.2 | 1.3 | 1.6 | 1.6 | 1.2 | 2.9 | 3.7 | 3.5 | 4.1 | 4.2 | 4.6 | +14.8%/yr | |
| Buybacks | – | – | – | 0.1 | 0.3 | 0.2 | 0.4 | 0.5 | 0.3 | 0.4 | 0.5 | – | |
| Dividends | 0.4 | 0.4 | 1.0 | 0.5 | 0.5 | 0.5 | 0.9 | 1.4 | 2.7 | 2.8 | 2.0 | +25.6%/yr | |
| Net cash | – | – | 3.6 | 4.6 | 4.9 | 7.1 | 9.7 | 11.2 | 12.0 | 12.8 | 12.9 | – | |
| Margins & returns (%) | |||||||||||||
| Gross margin | 67.7 | 70.1 | 70.0 | 69.1 | 68.5 | 71.3 | 70.8 | 72.3 | 70.3 | 71.1 | 71.3 | +3.4 pts | |
| Operating margin | 32.6 | 34.6 | 35.7 | 34.0 | 32.4 | 39.3 | 40.5 | 42.1 | 40.5 | 41.1 | 40.9 | +8.4 pts | |
| Net margin | 21.2 | 22.0 | 23.6 | 22.2 | 21.7 | 27.2 | 29.0 | 32.1 | 30.3 | 28.3 | 28.0 | +7.1 pts | |
| FCF margin | 23.3 | 24.2 | 27.3 | 23.4 | 18.7 | 32.0 | 31.6 | 25.8 | 26.8 | 26.3 | 28.2 | +3.0 pts | |
| ROIC | – | – | 82.0 | 83.4 | 60.1 | 108.8 | 125.1 | 100.5 | 83.5 | 77.8 | 77.7 | – | |
| Return on equity | 25.1 | 24.2 | 25.7 | 23.3 | 18.8 | 26.0 | 27.1 | 28.4 | 26.6 | 24.0 | 23.7 | -1.1 pts | |
| Stock pay % of revenue | 1.0 | 1.1 | 0.9 | 1.3 | 1.2 | 0.7 | 0.5 | 0.8 | 0.9 | 0.8 | 0.8 | -0.2 pts | |
| Capex % of revenue | 5.0 | 4.8 | 5.2 | 6.9 | 7.0 | 5.9 | 4.5 | 6.4 | 7.0 | 7.3 | 7.4 | +2.2 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- durable
- Trajectory
- stable
- Pricing power
- strong
- Leather Goods and Saddlery44.2%3 claims
- Ready-to-wear and Accessories28.3%2 claims
- Silk and Textiles6.0%1 claim
- Other Hermes sectors (Jewellery and Home)12.8%No moat
- Perfume and Beauty3.1%No moat
- Watches3.4%No moat
- Other products (John Lobb, Saint-Louis, Puiforcat and third-party production)2.2%No moat
Moat claims
- Applies to
- Leather Goods and Saddlery
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 4, 2026
Current collection demand and client trust support a strong leather-goods brand advantage; no definition-matched market share or wait-list metric is disclosed.
Leather sales rose 9.8% at constant currency in H1 2026, faster than LVMH Fashion and Leather Goods and Gucci. The premium brand remains strong, but slower growth than in 2024 does not prove that its advantage is widening.
- Leather Goods and Saddlery revenue€1.9B
- Ready-to-wear and Accessories revenue€1.1B
- Silk and Textiles revenue€214M
- Leather Goods and Saddlery sales at constant currency growth+11%
- Ready-to-wear and Accessories sales at constant currency growth-2%
- Silk and Textiles sales at constant currency growth+1%
- Brand dilution from over-expansion
- Quality-control lapses at scale
- Reputational and ESG controversy around animal materials
- Counterfeiting and gray-market effects
- SourceHermes H1 2026 results - Leather Goods and SaddleryJul 29, 2026
- Applies to
- Leather Goods and Saddlery
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 4, 2026
Handmade production and long training cycles constrain supply; Hermes expands workshops gradually, preserving scarcity while adding capacity.
Leather workshops increased from 23 at the end of 2024 to 25 by June 2026. The 18-month training course adds skilled capacity slowly. This expands craft capacity, but does not demonstrate a longer training barrier or an advantage growing faster than rivals; new sites still need to ramp.
- Leather Goods and Saddlery revenue€1.9B
- Leather Goods and Saddlery sales at constant currency growth+11%
- Leather goods workshops25
- Insufficient artisan hiring and training
- Wage inflation and labor constraints in France
- Disruption at key workshops
- Faster scaling could reduce exclusivity
- SourceHermes H1 2026 results - production capacityJul 29, 2026
- SourceHermes announces a new leather goods workshop in Les AndelysJan 30, 2026
- Applies to
- Leather Goods and Saddlery
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 4, 2026
High vertical integration and in-house or exclusive workshops support quality control, resilience, and differentiation.
The in-house and exclusive production share was 55% in 2023, 2024 and 2025. The model protects quality but the disclosed integration measure has not increased.
- Leather Goods and Saddlery revenue€1.9B
- Leather Goods and Saddlery sales at constant currency growth+11%
- Leather goods workshops25
- Objects made in in-house and exclusive workshops55.0%0.0 pts
- Raw material supply shocks and price spikes
- Stricter environmental or animal-welfare regulation
- Fixed-cost burden if demand slows
- Supplier concentration despite integration
- SourceHermes 2025 Universal Registration Document - industrial modelMar 19, 2026
- Applies to
- Ready-to-wear and Accessories
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 4, 2026
The house brand transfers demand to apparel and accessories, but seasonal fashion choices have low switching costs and H1 growth was modest.
Ready-to-wear and Accessories grew 2.0% at constant currency in H1 2026, after 5.5% in H1 2025. The house brand still attracts buyers, but weak switching costs and slower sales limit evidence of a widening advantage.
- Leather Goods and Saddlery revenue€1.9B
- Ready-to-wear and Accessories revenue€1.1B
- Silk and Textiles revenue€214M
- Leather Goods and Saddlery sales at constant currency growth+11%
- Ready-to-wear and Accessories sales at constant currency growth-2%
- Silk and Textiles sales at constant currency growth+1%
- Trend missteps in seasonal collections
- Designer and creative leadership changes
- Over-reliance on existing clients for growth
- SourceHermes H1 2026 results - house desirabilityJul 29, 2026
- Applies to
- Ready-to-wear and Accessories
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 4, 2026
Direct retail gives Hermès control over stock allocation, service and store presentation. It supports the premium brand, but full-price sell-through is not disclosed.
Directly operated branches increased from 225 in 2023 to 234 in 2025. Control of service and stock allocation remains strong. More stores add reach, but the already-high direct-sales share and undisclosed productivity do not establish a widening distribution advantage.
- Ready-to-wear and Accessories revenue€1.1B
- Ready-to-wear and Accessories sales at constant currency growth-2%
- Directly operated Hermès stores234+2%
- Traffic shifts to online marketplaces
- Regulatory constraints on selective distribution
- Rising retail rents and labor costs
- SourceHermes 2025 Universal Registration Document - distribution modelMar 19, 2026
- Applies to
- Silk and Textiles
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 4, 2026
Current creative momentum supports differentiation, but the category has low switching costs and no quantified share or repeat-purchase evidence.
Silk and Textiles grew 9.7% at constant currency in H1 2026 after 3.5% a year earlier. Creative demand improved, but repeat buying and pricing evidence remain unavailable, so one stronger half does not establish a wider moat.
- Leather Goods and Saddlery revenue€1.9B
- Ready-to-wear and Accessories revenue€1.1B
- Silk and Textiles revenue€214M
- Leather Goods and Saddlery sales at constant currency growth+11%
- Ready-to-wear and Accessories sales at constant currency growth-2%
- Silk and Textiles sales at constant currency growth+1%
- Fashion taste shifts away from silk accessories
- Counterfeits dilute perceived exclusivity
- Lower-priced substitutes increase
- SourceHermes H1 2026 results - Silk and TextilesJul 29, 2026
Profile change log
- Oct 4, 2026 · method change
Added ten years of EUR statements, twelve sales quarters and six half-year statements. Applied the reported IFRS16-restated 2018 comparative, kept minority-shareholder puts separate from borrowing, distinguished gross buybacks from net treasury flows and isolated the EUR52.7 million 2018 property gain and EUR331 million 2025 exceptional tax charge.
- Oct 4, 2026 · analyst revision
Added management, family-control context, a tested bull/bear debate and links to six shared end markets. Rival recovery, currencies, interest-rate exposure, inputs and French tax now inform the investment case.
- Oct 4, 2026 · analyst revision
Separated 75% made in France from 55% made in in-house and exclusive workshops, corrected the 2025 annual-report filing date from 1 April to 19 March 2026, and added evidence-based trajectories and public operating tests to all six claims.
Industry & peers
Peer map
Peers appear on the map as their numbers are collected.
Luxury leather goods and handbags
New luxury handbags, small leather goods, travel pieces and related leather accessories sold globally to wealthy and aspirational consumers. Ultra-premium artisan bags form a narrower tier within this market; saddlery is a small adjacent activity. Excludes resale turnover and apparel. No current size or exact company shares on this full scope were verified.
- Hermès
- Louis Vuitton and Dior (LVMH)
- Gucci, Bottega Veneta and Saint Laurent (Kering)
- Chanel
- Prada
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| RMS | 70 | 71.3% | 40.9% | |
| Industry median | 6 | 75 | 64.4% | 20.0% |
| Sector median | 85 | 74 | 55.3% | 17.0% |
| All stocks median | 398 | 76 | 53.1% | 20.0% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Strong long-term demand from wealthy customers and craft heritage supports the top tier; aspirational demand is more exposed to employment, confidence and wealth-market moves. This assessment follows company geographic sales and Bain’s consumer study.
- Growth depends on skilled labour and workshop ramps, not simply more stores. Hermès’ announced French workshop pipeline adds supply gradually.
- Foreign exchange has high exposure: non-euro sales meet largely French production costs. Hedges delay some profit effects; a stronger euro also changes where tourists buy.
- Interest rates have moderate indirect exposure through customer wealth and confidence; direct debt-service exposure is low for cash-rich houses. Resale can reinforce brand awareness but also offers buyers a substitute.
- Luxury-cycle and China weakness can outlast available supply growth. Scarcity alone is not proof of demand at any price.
- Currencies, French wages, hides, energy and US tariff changes can raise costs; passing them on may reduce demand. Raw materials matter, but craft labour and retail also drive costs.
- Animal-welfare, CITES trade rules, traceability and labour standards can damage trust or restrict materials. The Hermès annual risk disclosures identify these supply-chain obligations.
- Added capacity or lower product quality can reduce exclusivity. Rival creative recovery can narrow relative performance without destroying Hermès’ absolute brand strength.
Bulls & bears
Can Hermès grow skilled leather capacity and demand beyond handbags while preserving premium pricing and operating profitability through currency, tax and luxury-cycle pressure?
Arguments
What to watch
- 1Leather revenue and reported constant-currency sales against the same-period rival trend
- 2Workshop openings and ramp progress; no public bag-volume series exists
- 3Ready-to-wear, Silk, Beauty and Watches constant-currency sales
- 4Operating profit and after-tax cash generation alongside capex and lease commitments
- 5Reported French exceptional tax charge and the gap between reported and constant-currency sales
Next check: FY2026 results on February 12, 2027: test leather capacity and pricing after Q3 leather growth of 10.8% at constant currency, and whether ready-to-wear recovers from its 2.0% decline. Separate regional demand and currency from brand pricing power.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Nov 10, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 70/100 by <a href="https://www.findmymoat.com/stocks/XPAR:RMS">Find My Moat</a> (as of September 2026)Curation & Accuracy
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