Hermes Sales Growth Slows as Luxury Backdrop Remains Tough

By Andrea Figueras

Hermes said sales growth lost pace in the third quarter, as hopes of a recovery in luxury demand dwindle.

The French luxury house booked revenue of 4.1 billion euros ($4.61 billion) for the quarter through September, 4.3% higher than in the same period a year earlier at constant currency exchange rates. In the second quarter, the Parisian maker of high-end handbags and silk scarves logged a 6.7% organic increase in revenue.

Luxury names have been navigating a tough market in recent years, mainly due to sliding demand for high-end goods, especially in China, where European brands also face rising competition from local labels.

The timing of a recovery in China has been a major question for the industry, which had come to rely on spending by the country's wealthy shoppers at home and abroad. However, China's economy remains choppy, prompting consumers to keep to a tight budget.

Last week, Louis Vuitton owner LVMH warned that weak demand in the country weighed on the performance of its crucial fashion and leather goods division.

Hermes said that despite the economic, geopolitical and monetary uncertainties, it continues to expect revenue growth at constant exchange rates in the medium term.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

October 22, 2026 02:39 ET (06:39 GMT)