Figures obtained by leading Cambridge based accountancy firm Price Bailey, reveal a growing divide in the luxury retail sector. According to stock market data, Hermès is the only major listed luxury retailer to report consistent year-on-year growth in both revenue and EBITDA from 2023 through to 2025. The analysis by Price Bailey, indicates a growing divide in the luxury retail space, with only the highest performing brands accessing consistent growth.
According to Price Bailey, in 2023 Hermès reported a revenue of €13.4 billion and an EBITDA of €6.4 billion. Forecasts for 2025 show Hermès continuing its upward trajectory, with revenue expected to reach €16.2 billion and EBITDA €7.2 billion. This comes as Kering is expected to see a 24% drop in revenue, falling from €19.6bn in 2023 to €14.9bn in 2025. A similar trend is seen in EBITDA, which is forecast to fall by 44% in 2025.
Hermès growth and outstanding margins continue to demonstrate the value of having strong values around product creation and brand combined with a limited need to engage in modern consumer marketing battles with their peers.
According to Price Bailey, Richemont also felt a squeeze. Richemont’s EBITDA, fell by 7.7%. Despite this, the business did manage to increase its revenue from €19.9bn in 2023 to €21.4bn in 2025.
LVMH, the largest player in the sector by revenue, has also been affected by the slowdown. LVMH’s revenue is projected to decline from €86.2 billion in 2023 to €80.8 billion in 2025, with EBITDA falling from €30 billion to €24.5 billion.
The analysis investigated the EBITDA and revenue of Hermès, LVMH, Richemont and Kering from 2023 to 2025.
Chand Chudasama, Strategic Corporate Finance Partner at Price Bailey comments: “As the luxury sector grapples with changing consumer behaviour and economic headwinds, Hermès’ performance sets it apart. Their operating model and brand is fundamentally different to their peers and this is being rewarded with high margins, growth and maintaining value creation for shareholders.”
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