Companies

Hermès grows, but momentum eases in the first quarter

Apr 20, 2026 France

The France-based luxury group reported solid growth in the first quarter of 2026. Geopolitical tensions in the Middle East and uneven regional trends had a negative impact on performance

In the first quarter of the 2026 financial year, Hermès reported consolidated revenue of 4.1 billion euros. This represents a 5.6% increase at constant exchange rates compared to the same period in the previous financial year.

Several media outlets reported that this growth was below the 7% expected by analysts, marking a deceleration compared to the previous quarter when sales increased by 9.8%.

The luxury group highlighted year-on-year growth of 17.2%, 9.6% and 9.7 in the Americas, Japan and Europe (excluding France), respectively, at constant exchange rates.

By contrast, growth in the Asia-Pacific region (excluding Japan) was more subdued, at 2.2% and -4.6% on a current basis. Growth was also negative in France, at -2.8%, and in the Middle East, at -5.9%.

From March onwards, performance in the Middle East was significantly impacted by geopolitical developments, particularly in the UAE, Kuwait, Qatar and Bahrain. This had a knock-on effect in France due to reduced tourist numbers.

Segments Performance

The Leather Goods and Saddlery, Silks and Textiles, and Other sectors of Hermès recorded solid performances, with sales growing by 9.4%, 7.8%, and 6.8%, respectively, on a constant exchange rate basis, compared to the first quarter of 2025.

Conversely, growth in the Ready-to-Wear and Accessories segment slowed from 7.1% in the fourth quarter of last year to 0.4% in the first quarter of this year. This was due to a slowdown in both the Middle East and France, where sneakers and Oran sandals typically perform well in this season.

Growth was also flat on a year-on-year basis in the Perfume and Beauty segment, and negative at 3.7% in the Watches segment.

“In a tense geopolitical environment, Hermès maintains its course, true to its long-term strategy. Supported by its abundant creativity, its uncompromising quality and the loyalty of its clients, Hermès is continuing its profitable growth in 2026 with confidence and conviction”, said Axel Dumas, Executive Chairman of Hermès.

Image Credits: laforma.club

Illustration: Sofia Pádua

France Companies Hermès Luxury Quarter Results Results