Hermès third-quarter revenue rises 5.5% at current exchange rates, led by leather goods
Key Facts
Hermès revenue rose to 4,096 million euros in the third quarter of 2026, up 5.5% year on year at current exchange rates, according to the company's statement issued on October 22. The company compared the figure with revenue of 3,881 million euros in the corresponding period a year earlier. Excluding currency fluctuations, quarterly revenue grew 4.3%, with performance varying across regions and businesses. Growth at constant exchange rates slowed from 6.1% in the first half, according to key figures published on Hermès' financial website. First-half revenue growth had itself slowed from an 8.1% increase in the same period of 2025.
By region, sales in the Americas rose 8.8% in the third quarter from the same period a year earlier at constant exchange rates, according to Hermès' statement. Japan posted stronger growth of 9.6% on the same basis, outpacing the Americas. In Europe excluding France, sales rose 9.5%, bringing the region's growth rate close to Japan's. By contrast, sales in Asia-Pacific excluding Japan were flat, with a year-on-year change of 0.0% excluding currency effects. Sales in the region classified as "Other", which comprises mainly the Middle East, fell 4.5%, contrasting with growth in the other markets cited in the disclosure.
Leather Goods and Saddlery led growth among the businesses cited, with quarterly revenue of 1,912 million euros, up 10.8% year on year at constant exchange rates. Hermès attributed the business's performance to the appeal of new designs and iconic pieces, citing "strong appeal" for its products in the statement. Growth extended to Perfume and Beauty, where third-quarter revenue rose 7.5% excluding currency effects, albeit more slowly than Leather Goods and Saddlery. But Ready-to-Wear and Accessories posted a 2.0% year-on-year revenue decline on the same basis. The decline was steeper in Watches, where quarterly revenue fell 6.0%, compared with gains in leather goods, perfume and beauty.
Over the nine months from January to September 2026, Hermès revenue totalled 12,260 million euros, compared with 11,916 million euros in the corresponding period, according to the company's statement. Cumulative growth was 5.5% at constant exchange rates, while the increase at current exchange rates was limited to 2.9%. Hermès said currency fluctuations reduced revenue for the period by about 310 million euros. On profitability, its recurring operating margin was 41.0% in the first half, compared with 41.4% in the same period a year earlier, according to its financial website. In the market, Hermès shares had fallen 1.6% to 1,278.5 euros during the October 5 session, ahead of the revenue announcement, according to Investing.com. The website reported that day that UBS had downgraded the stock from "Neutral" to "Sell". The downgrade preceded the publication of the third-quarter figures announced by the company in October.
Looking ahead, Hermès reaffirmed what it described as an "ambitious goal for revenue growth at constant exchange rates" over the medium term, despite economic, geopolitical and monetary uncertainty. Its leather goods plans include opening a workshop in Charleville-Mézières by 2027, according to the revenue statement. The company also plans to open a workshop in Colombelles by 2028. A planned workshop opening in Les Andelys by 2030 follows as part of its announced expansion schedule for the business. As for upcoming financial disclosures, Hermès intends to announce its full-year 2026 results on February 12, 2027, according to its financial calendar. It is then scheduled to report first-quarter 2027 revenue on April 22, 2027.