Q4/FY 2025 - Hermès Int'l
The margin expansion no one saw coming
Yesterday before the bell, Hermès Int’l reported its full-year 2025 results. The stock closed up 2.7% but is down 2.3% today.
The true luxury company delivered another year of measured growth at solid profitability, while continuing to invest in key areas to expand capacity.
Making a bag is 16 hours worth of work, so our volumes are quite low.
It’s the same repetitive strategy that’s been paying off greatly over time, and whenever you hear the management team talk about the business there’s little new to learn (other than the short-term dynamics between different geographies, comments on inventory management, foreign exchange).
In 2026, it’ll open its 25th leather goods workshop.
