Hermès reported revenues of €4.1 billion in the first quarter of 2026, up 6% at constant exchange rates but down 1% on a reported basis due to currency headwinds of €290 million. The results fell short of analyst expectations of 7% growth.
Leather goods and saddlery — the group’s largest division — delivered the strongest performance across all categories, growing 9.4% at constant exchange rates. New introductions including the Faubourg Express redesign, the Collier d’Attelage collection, and the Herbag 20 (a smaller format that capitalises on appetite for compact bags) all saw strong sell-through.
By region, the Americas were the clear standout at +17%, driven by robust domestic demand across the US, Canada, and South America. Japan grew 9.6%; Europe excluding France grew 9.7%, supported by local clientele. Greater China grew just 2.2%, with foot traffic described as “stalled.” France fell 2.8%, weighed down by a collapse in Middle East tourism from March onwards, with some stores reporting daily revenue declines of 20–30%.
Management described the Middle East disruption as temporary, noting that all stores had reopened by early April. Hermès opened its 25th leather workshop, in Loupes in the Gironde, and has three more facilities under construction ahead of 2030.
Analyst reaction was measured: Deutsche Bank noted that growth was primarily price- and leather-driven, with non-leather categories showing little momentum. Bernstein acknowledged reduced brand heat but suggested Middle East and tourism headwinds could reverse in H2 2026.