Hermès to increase production of its Iconic, absurdly expensive bags to meet growing demand

Hermès continues to ramp up its bag production in France amid soaring sales and high demand. To help customers get their hands on their coveted bags faster, the fashion house is opening four new factories across the country, WWD reports.

One of them is a new leather goods workshop in Colombelles, a town in the Calvados region on the northern Atlantic coast; the location will be the company’s 27th leather goods factory in France. Hermès will employ 260 craftsmen to produce the Kelly and Constance models, the publication reports.

Hermès also has a factory set to debut later this year in Ile d’Espagnac in central France. Another plant is planned for 2026 in Loup (in the southwest region of the country), and another in 2027 in Charleville-Mézières (in northern France).
The luxury fashion house is off to a strong start to 2025. Hèrmes’ first-quarter sales report last week showed that the brand’s leather goods sales were up 10 percent year-on-year.

Hèrmes achieved overall sales growth of 7 percent in the first three months of 2025, a figure that missed analysts’ forecasts but was more positive than LMVH, whose sales fell 3 percent in the same period. The rivalry between the brands intensified last week when Hermès overtook LVMH to become the world’s most valuable luxury company.