French luxury house Hermès reported on Thursday, February 12, an increase in 2025 sales even though it faced steep US tariffs and a weak dollar, which made its leather handbags and other goods more pricey for customers worldwide.

Revenue rose 5.5 percent to 16 billion euros (USD 19 billion), with all regions seeing increases, the company said in a statement.

Net profit slipped 1.7 percent to 4.5 billion, which the group attributed to a one-time tax of 330 million euros imposed by the French government on major companies as an "exceptional contribution" to help the country cut debt. Without the levy profit was up 5.5 percent on the year, chief executive Axel Dumas said in presenting the results to journalists.

"I can’t make any forecasts for 2026," he added. "We’ve returned to a world where every two years there’s some problem somewhere, or there’s a region that’s stuck."

Nonetheless, he said he expected "very strong growth in the United States, and Europe to hold up."

President Donald Trump’s steep tariffs on European firms threatened to eat into Hermès’s sales. That resulted in most EU exports facing a 15 percent US levy. However, the company said in October that it had kept prices steady since the EU-US tariff deal in July.

The dollar’s decline against the euro and other currencies also made its silk scarves and other goods more expensive, yet demand held up over the year, Dumas said.

Sales in the Americas rose 7.3 percent to 3.1 billion euros, while Europe sales gained 9.6 percent to 3.9 billion euros. In Asia, which generates the bulk of Hermès’s revenue, sales rose 2.6 percent to 8.3 billion.

At the end of December 2025, all the group’s segments posted growth, with the exception of the Perfume & Beauty (-8.6%) and Watches (-4.7%). Sales in the Leather Goods and Saddlery segment, the group’s core business, increased by +9.5%, exceeding 7 billion euros.

When questioned by analysts, Axel Dumas conceded that Hermès is facing “challenges in perfumery, though not in makeup.” There remain “areas where we can improve,” he said, reaffirming the company’s commitment to expanding in this category to achieve the “critical scale” required. He announced Hermès’s intention to "enter the skincare business," without specifying a timeframe.