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Hermes said in its quarterly revenue report released on October 22, 2026 that third-quarter sales reached 4.10 billion euros, an increase of 4.3 percent at constant exchange rates from the prior year. The company noted this was the weakest quarterly growth since early 2020 when pandemic restrictions forced boutique closures worldwide. Finance director Eric du Halgouet attributed the overall moderation to a challenging macroeconomic and geopolitical environment while highlighting resilience in core categories.
The leather goods and saddlery division that produces Birkin and Kelly handbags advanced 10.8 percent to 1.91 billion euros during the period, according to Hermes figures. Ready-to-wear and accessories, which account for more than a quarter of quarterly revenue, contracted 2 percent to 1.14 billion euros, the first negative performance in years for the segment. Du Halgouet told reporters on the earnings call that the ready-to-wear decline stemmed exclusively from weak Chinese demand, with the division expanding in every other region.
Nine-month consolidated revenue totaled 12.3 billion euros, up 6 percent at constant exchange rates and 3 percent at current rates compared with the same period in 2025, the Hermes report showed. The Americas posted 10.7 percent growth at constant rates in the third quarter while Europe excluding France rose 8.6 percent and Japan gained 3.4 percent. Asia-Pacific excluding Japan was flat and the Middle East declined 4.5 percent as the only contracting region.
Executive chairman Axel Dumas expressed measured confidence in the company’s direction. “Despite a complex environment, Hermès continues its profitable growth and maintains its course,” Dumas said in the statement. “Convinced of the strength and relevance of our artisanal model, we see our vision as firmly rooted in the long term, and we look to the future with confidence.” He pointed to upcoming collections including the first men’s ready-to-wear line by Grace Wales Bonner and couture by Nadège Vanhée set for January 2027.
The performance arrives as luxury peers face similar pressures from subdued Asian consumption. LVMH warned only the previous week that weak demand in China had weighed on its fashion and leather goods division, a Morningstar assessment found. Hermes shares have fallen 36 percent since the start of the year, Reuters market data shows, as investors reassess the group’s historically elevated valuation amid decelerating expansion.
Hermes maintained its expectation for revenue growth at constant exchange rates over the medium term despite economic, geopolitical and monetary uncertainties. The company said it remains focused on its sustainable artisanal model that has underpinned a decade of strong results. Visible Alpha polling of analysts had projected 5.2 percent third-quarter growth, a target the actual outcome did not meet.
