Hermes Sales Growth Slows Amid Uncertain Recovery Path for Luxury Sector
By Andrea Figueras
Birkin bag maker Hermes reported a slowdown in sales growth for the first quarter as the war in Iran clouds the sector's rebound.
The French company booked revenue of 4.07 billion euros ($4.80 billion) for the first three months of the year, 5.6% higher than in the same period a year earlier excluding currency movements. The rise in quarterly sales showed a downward trend compared with the previous three months, when Hermes booked a 9.8% increase.
At current exchange rates, first-quarter sales declined on year due to a significant negative impact of currency fluctuations of 290 million euros.
The overall result fell short of analysts' forecast of 4.16 billion euros, according to a Visible Alpha poll of estimates.
Luxury brands have been struggling for years with shrinking demand for high-end goods, as well as tough market conditions including trade disputes and geopolitical instability. The industry had hoped for a recovery this year, driven by better results in crucial markets like the U.S. and China, but the war in Iran has cast a shadow over those expectations.
"In a still uncertain economic and geopolitical context, the group has moved into 2026 with confidence," Hermes said. The group confirmed its medium-term guidance of sales growth at constant exchange rates.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
April 15, 2026 02:32 ET (06:32 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy Before They Rise Further
2 Undervalued Stocks to Buy Before They Rebound
The 10 Best Dividend Stocks
12 Best Blue-Chip Stocks to Buy for the Long Term
United States