Hermes sticks with plan to raise output even as war sours mood
The company’s leather-goods plants are all in France and typically employ about 260 artisans
Published Sat, Apr 11, 2026 · 03:06 PM
[PARIS] Hermes opened a 25th leather-goods plant in France, pushing ahead with plans to increase production despite a luxury demand slowdown and fresh uncertainty induced by the Iran war.
Hermes’ top brass, led by executive chairman Axel Dumas, inaugurated the plant in Loupes, near Bordeaux, on Friday (Apr 10) in the presence of local authorities. The site is currently making mostly Kelly handbags and will increase production of the Constance and Bride de Jour.
“The Kelly is the most complex model to produce, so it makes for a good training basis for newly recruited artisans to expand their skill set,” said Guillaume de Seynes, executive vice-president for the manufacturing division and equity investments.
The company’s leather-goods plants – which make bags, belts and wallets – are all in France and typically employ about 260 artisans. The workers go through an 18-month training programme before potentially getting a permanent position. A good artisan generally becomes fully autonomous within five years. Hermes’ leather shoes tend to be produced in Italy.
Hermes reports first-quarter sales on Apr 15, two days after LVMH, the world’s largest luxury group. Shares of Hermes and its peers have lost ground since the start of the year as the war in the Middle East threatens consumer demand globally.
Hermes has proven more resilient than its peers, thanks in part to its craftsmanship model, which prioritises handmade rather than industrialised production.
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“I was joking with a journalist yesterday who asked me how AI will transform Hermes,” Dumas quipped at the inauguration. “I told him the strength of Hermes is that we missed almost all the technological revolutions.”
Workers typically stitch and assemble entire bags by hand, a process that can take 15 to 20 hours for a Kelly. A standard Kelly size 25 bag starts at a price of 8,750 euros (S$13,087).
Hermes plans to open three more leather-goods facilities in France by 2030. The decision to build a new plant is generally taken about four years before it opens, according to Olivier Fournier, executive vice-president for corporate development and social affairs. BLOOMBERG
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