Revenue Up at Constant Rates
Hermès reported first-quarter 2026 revenue of €4.07 billion ($4.80 billion), representing a 6% increase at constant exchange rates. On a reported basis, however, sales declined 1% due to a €290 million currency impact.
The luxury group said it continues to navigate a tense geopolitical backdrop while maintaining its long-term strategy focused on creativity, craftsmanship and client loyalty.
Regional Performance Mixed
Growth varied across regions. The Americas delivered a strong 17% increase, while Japan and Europe excluding France each rose 10%.
France saw a 3% decline, which the company attributed to reduced tourist traffic linked to developments in the Middle East. Asia excluding Japan grew modestly by 2%, supported primarily by local demand.
The “Other” region, largely comprising Middle Eastern markets such as the UAE, Kuwait, Qatar and Bahrain, fell 6% amid geopolitical pressures.
Retail Resilient, Wholesale Softer
Retail sales in company-operated stores increased 7%, even as tourist flows softened. Wholesale performance was weaker, reflecting reduced activity in concession stores, particularly in the Middle East and airport locations.
Category Breakdown
By division, leather goods and saddlery rose 9%, supported by sustained demand and increased production capacity, including a new workshop in France.
Silk and textiles advanced 8%, while jewellery and home categories grew 7%. Ready-to-wear, accessories, perfume and beauty were flat. The watches segment declined 4% as the broader market remained challenging.
Investment and Expansion Plans
Hermès continued expanding its production and retail footprint. The group opened a store in Hanoi, Vietnam and refurbished and enlarged its Umeda Hankyu location in Osaka, Japan.
New leather goods workshops are planned in Charleville-Mézières in 2027, Colombelles in 2028 and Les Andelys in 2030, all in France. The company also intends to expand its watchmaking facility in Le Noirmont, Switzerland, with completion targeted for 2028.
Early in 2026, Hermès distributed €328 million to employees tied to 2025 results, including profit-sharing, incentive schemes and a €3,000 bonus for all staff.
Looking ahead, the group reaffirmed its medium-term objective of revenue growth at constant exchange rates, while acknowledging ongoing economic, geopolitical and currency uncertainty.
