Hermès reports double-digit growth despite Middle East impact

Hermès has reported double-digit growth in the first quarter of 2026, with consolidated revenues of €4.1 billion, up 6% at constant exchange rates compared with 2025.

Excluding France, where it noted a downturn of 3%, which it said was due to a slowdown in tourist flows due to the situation in the Middle East, the European market saw a 10% increase in sales. The luxury giant also saw double-digit growth in the Americas and Japan.

At current exchange rates, however, sales slightly declined by 1% due to the significant negative impact of currency fluctuations, calculated at -€290 million.

It also noted that wholesale activity was significantly affected by lower sales to concession stores, particularly in the Middle East and in airports.

Hermès cited its highly integrated artisanal model, balanced distribution network, the creativity of collections and the loyalty of clients as reasons for its growth.

The group confirmed that, in the medium term, it would continue to pursue its ambitious goal for revenue growth at constant exchange rates.

Hermès’ ready-to-wear and accessories categories saw a 6% decrease in sales in the first quarter of 2026 compared with the same period in 2025, a "stable performance" said the brand.

Leather goods and saddlery, on the other hand, saw 9% growth, which the brand attributed to both heightened demand and increased production capacity. There was also solid growth of 8% in its silk and textiles category, driven by "renewed creativity across both the women’s and men’s collections."

Hermès noted that the performance of its perfume and beauty category was "stable", although it saw a slight downturn, decreasing by 2.2% in the three months up to March. It specifically highlighted the launch of its first skincare foundation 'Plein Air' in January, which is now available in 34 shades.

Axel Dumas, Executive Chairman of Hermès, said: "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. The fundamentals of the Hermès model are more than ever a differentiating strength."

The results follow the luxury brand's full year results for the full year of 2025, where it exceed the €16 billion (£13.9 billion) revenue mark for the first time.