Resilient but not immune. Hermès’ sales results for the first quarter of 2026 came in below expectations, yet still outperformed those of LVMH and Kering. The maison was affected by the war in Iran, not only in its Middle Eastern stores but also in its European ones. In the medium term, despite economic, geopolitical and monetary uncertainties, the group is maintaining an ambitious revenue growth target at constant exchange rates.

Hermès? Resilient but not immune

Hermès’ revenue for the January–March 2026 period reached EUR 4.07 billion, up 5.6% at constant exchange rates and down 1.4% at current exchange rates. Analysts polled by Visible Alpha had expected +7.1%, according to Reuters. During the analysts’ conference call, the company’s Chief Financial Officer, Eric du Halgouet, said that stores in Italy, Switzerland and the United Kingdom saw fewer visits from Middle Eastern customers. “We had very strong growth — double-digit growth in January and February — then a sharp slowdown in March”, du Halgouet added, noting that sales in luxury shopping centres in Dubai and other Gulf retail hubs fell by 40% over that period. For Hermès, the Middle East accounts for just 4.4% of sales, but it was the fastest-growing region last year.

Excluding Japan

Another disappointing region was Asia-Pacific excluding Japan (+9.6%), which posted +2.2% at constant exchange rates, compared with analysts’ expectations of +5.84%. By contrast, Hermès recorded +17.2% at constant exchange rates in the US market. Europe (excluding France) also performed well, up 9.7%. “In a tense geopolitical context, Hermès is holding its course, remaining true to its long-term strategy,” said CEO Axel Dumas.

Sales in the “Leather Goods and Saddlery” division rose by 2% at current exchange rates and by 9.4% at constant exchange rates. In the statement accompanying the results, Hermès noted that it distributed EUR 328 million to employees as a bonus for its 2025 performance. “This amount”, the group specified, “includes profit-sharing and productivity bonuses in France, as well as a EUR 3,000 bonus paid to all employees worldwide”.