Hermès vs Kering: Revenue, Profit and Business Model
Hermès reported ~$18.1B of revenue in FY2025 and ~$5.1B of net income. Kering reported ~$16.6B of revenue in FY2025 and ~$81.4M of net income.
Latest financial snapshot
Financial summary
Hermès
Hermès grew revenue from ~$10.1B (€8.98B) in 2021 to ~$18.1B (€16.0B) in 2025. In 2025 sales rose 5.5% reported and 8.9% at constant currency, recurring operating income reached ~$7.42B (€6.57B) (41.0% of sales) and net profit was ~$5.11B (€4.52B), held back by France's exceptional surtax on large companies (~$5.49B (€4.86B) adjusted). The balance sheet carries a restated net cash position of ~$14.5B (€12.8B) at end-2025 and no meaningful debt. In H1 2026 revenue was ~$9.22B (€8.16B) (+6.1% constant currency, +1.6% reported) with a 41.0% margin, but Q2 growth slightly missed forecasts and the shares fell roughly 37% in 2026 amid weak Chinese demand.
Kering
Kering's numbers tell a story of rapid growth followed by a sharp correction. Revenue rose to ~$23 billion (EUR 20.351 billion) in 2022, then fell to ~$22.1 billion (EUR 19.566 billion) in 2023, ~$19.1 billion (EUR 16.874 billion) in 2024 and ~$16.6 billion (EUR 14.675 billion) in 2025. Net income attributable to the group dropped from ~$4.08 billion (EUR 3.614 billion) in 2022 to ~$81.4 million (EUR 72 million) in 2025. Gucci drove most of the decline: its 2025 revenue was ~$6.77 billion (EUR 5.992 billion), down 22% as reported. The balance sheet was repaired in 2026. The ~$4.52 billion (EUR 4 billion) cash sale of Kering Beaute to L'Oreal closed on March 31, 2026, and the Milan property transaction brought ~$824 million (EUR 729 million) at closing, so net debt fell from ~$9.04 billion (EUR 8.0 billion) at end-2025 to ~$3.73 billion (EUR 3.3 billion) on June 30, 2026. H1 2026 revenue was ~$8.16 billion (EUR 7.22 billion) (down 3% reported, up 1% comparable), recurring operating income was ~$1.04 billion (EUR 921 million) (12.8% margin, up 40 basis points), and net income attributable to the group was ~$214 million (EUR 189 million). Gucci's H1 2026 revenue was ~$3.12 billion (EUR 2.757 billion), down 5% on a comparable basis, with Q2 improving to down 2%.
Revenue and profit by year
Hermès
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$18.1B | ~$5.1B | 28.3% | +5.5% | Source |
| FY2024 | ~$17.1B | ~$5.2B | 30.3% | +13.0% | Source |
| FY2023 | ~$15.2B | ~$4.9B | 32.1% | +15.7% | Source |
| FY2022 | ~$13.1B | ~$3.8B | 29.0% | +29.2% | Source |
| FY2021 | ~$10.1B | ~$2.8B | 27.2% | — | Source |
Where the revenue comes from
Hermès
- Leather Goods and Saddlery44%
Bags, travel items, small leather goods and equestrian products; ~$7.99B (€7.07B) in 2025, up 13.1% at constant currency.
- Ready-to-Wear and Accessories28%
Men's and women's ready-to-wear, belts, costume jewelry, gloves, hats and shoes; ~$5.12B (€4.53B) in 2025.
- Silk and Textiles6%
Carré scarves, ties and textiles; ~$1.08B (€0.96B) in 2025.
- Other Hermès Sectors~13%
Jewelry, home, tableware, and other categories that extend the house into broader luxury living.
- Perfume and Beauty3%
Fragrance and Hermès Beauty; ~$554M (€0.49B) in 2025, down 7.6% at constant currency against the 2024 Barénia launch.
- Watches3%
Watches including the H08 line; ~$622M (€0.55B) in 2025, down 1.5% at constant currency.
- Other Products2%
John Lobb, Saint-Louis, Puiforcat and production for non-group brands (textile printing, tanning); ~$395M (€0.35B) in 2025.
Kering
- Gucci~41%
Gucci generated ~$6.77 billion (EUR 5.992 billion) of FY2025 revenue and remained Kering's largest house despite a 22% reported decline.
- Yves Saint Laurent~18%
Yves Saint Laurent generated ~$2.99 billion (EUR 2.643 billion) of FY2025 revenue, supported by direct retail and ongoing brand investment.
- Bottega Veneta~12%
Bottega Veneta generated ~$1.93 billion (EUR 1.706 billion) in FY2025 revenue and was comparatively resilient, up 3% on a comparable basis.
- Other Houses, Jewelry and Eyewear~30%
Balenciaga, McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735 and Kering Eyewear supplied the rest of FY2025 revenue; Kering Eyewear alone generated ~$1.09 billion (EUR 965 million) in H1 2026.
Business model and strategy
Hermès
How it makes money
Hermès sells its own products through roughly 300 exclusive stores (mostly directly operated) and hermes.com, with very little wholesale. About 55% of objects are made in in-house and exclusive workshops and 75% are made in France (2025). Leather Goods and Saddlery is the engine: ~$7.99B (€7.07B) of 2025 revenue (44%), with output capped by the number of trained artisans, so demand runs ahead of supply.
Growth strategy
Hermès grows mainly through price increases, gradual leather capacity additions of roughly one new French workshop per year, store renovations and selective openings (Scottsdale and Nashville in 2025), and categories beyond bags such as jewelry, home and ready-to-wear. It avoids acquisitions of other brands and buybacks, and returns cash through dividends (€18.00 per share proposed for 2025).
Competitive advantage
Hermès's moat is artisan capacity that competitors cannot buy quickly. Its leather bags are hand-made by craftspeople trained in its own schools (12 Hermès École des savoir-faire sites by end-2025), and the group opened its 24th leather goods workshop in L'Isle-d'Espagnac in 2025, with Loupes (2026), Charleville-Mézières (2027), Colombelles (2028) and Les Andelys (by 2030) planned.
Kering
How it makes money
Kering makes money by selling high-priced fashion, leather goods, shoes, jewelry and eyewear under brands it owns outright. Most revenue comes through its own directly operated stores and e-commerce, which lets the houses control pricing and keep the full retail margin; wholesale, licensing and royalties make up the rest.
Growth strategy
Kering's growth plan is called ReconKering, presented at a Capital Markets Day in Florence on April 16, 2026. It focuses on restoring each house's desirability, simplifying the organization, sharing technology and operating platforms across houses, and pruning retail: Kering made 75 net store closures in 2025 and 84 in H1 2026 against a full-year 2026 target of 100.
Competitive advantage
Kering's advantages are brand equity that took decades to build, a direct retail network in the world's main luxury streets, shared group platforms for sourcing, logistics, real estate and technology, and the patience of a controlling family shareholder.
Questions about Hermès vs Kering
Which company has higher revenue — Hermès International or Kering SA?
Hermès International reported ~$18.1B (FY2025), while Kering SA reported ~$16.6B (FY2025). By last reported revenue, Hermès International is the larger business, with Kering SA reporting a smaller revenue base.
What is the market cap of Hermès International vs Kering SA?
Hermès International's market capitalisation stands at $162.0B, while Kering SA's is $27.4B. Hermès International carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Kering SA.
Which is more financially efficient — Hermès International or Kering SA?
Hermès International generates $667k / employee in revenue per employee, while Kering SA generates $379k / employee. Hermès International shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Hermès International and Kering SA make money?
Hermès International and Kering SA generate revenue in fundamentally different ways. Hermès International: Hermès sells its own products through roughly 300 exclusive stores (mostly directly operated) and hermes. Kering SA: Kering makes money by selling high-priced fashion, leather goods, shoes, jewelry and eyewear under brands it owns outright.
Which company is valued higher relative to revenue — Hermès International or Kering SA?
On a price-to-sales (P/S) basis, Hermès International trades at 9.0x P/S and Kering SA at 1.7x P/S. Hermès International commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Kering SA. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Hermès International bigger than Kering SA?
By last reported revenue, Hermès International (~$18.1B (FY2025)) is the larger company compared to Kering SA (~$16.6B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Hermès vs Kering overview