Hermès growth slows: third-quarter revenue up 4.3 percent
Bags such as the Birkin and Kelly keep growing while ready-to-wear and watches weaken. Sales in Asia-Pacific excluding Japan were flat for the Paris house.
Photo: Gryffindor / Wikimedia Commons, Public domain (cropped and resized)
Video: YouTube · Reuters · youtube.com
Hermès reported third-quarter revenue of 4.096 billion euros on 22 October, up 4.3 percent at constant exchange rates and 5.5 percent at current rates. Organic growth had been 6.7 percent in the second quarter. According to FactSet, analysts had expected 4.13 billion euros and growth of 5.5 percent. Nine-month revenue reached 12.26 billion euros, up 5.5 percent at constant rates, with currency effects costing about 310 million euros.
Leather goods and saddlery grew 10.8 percent in the quarter to 1.912 billion euros. Ready-to-wear and accessories fell 2.0 percent to 1.141 billion euros and watches 6.0 percent. Asia-Pacific excluding Japan was flat at 1.65 billion euros, while Japan rose 9.6 percent, the Americas 8.8 percent and Europe excluding France 9.5 percent. The Middle East region fell 4.5 percent. Chief financial officer Eric du Halgouët called the Chinese market "very difficult", Option Finance reported.
"Despite a complex environment, Hermès continues its profitable growth and maintains its course," executive chairman Axel Dumas said. Grace Wales Bonner's first menswear collection follows in the new year, and Nadège Vanhée's Couture line in January. The shares fell 2.7 percent before the market opened and have lost more than a third of their value since 1 January. Full-year results are due on 12 February 2027. A video by the Reuters news agency looks at whether the Birkin bag is losing its exclusivity amid ample supply.