Hermès: +6% Organic Growth, but Currency Effects Wipe Out €290M in Q1
Hermès reports mixed results for the first quarter of 2026. The group recorded consolidated revenues of €4.1 billion, marked by a major dichotomy: a robust organic growth of 6% at constant rates that is offset by adverse currency effects amounting to €290 million. Beyond this accounting mechanism, a fragmented geopolitical landscape emerges, where some regions show remarkable vitality while others experience a significant decline.
Performance at Constant Rates
At constant rates, the group shows a 6% increase compared to the first quarter of 2025, driven particularly by key regions. America jumped by 17%, Japan progressed by 10%, and Europe excluding France registered a 10% increase. These performances starkly contrast with the declining trajectories: France fell by 3%, and the Other zone (mainly comprising the Middle East) plummeted by 6%. In terms of sectors, Leather Goods-Saddlery exhibited the strongest dynamic with a 9% increase, followed by Other Hermès sectors and Silk and Textiles rising by 7% and 8% respectively. Clothing and Accessories remained stable, as did Perfume and Beauty, while Watches declined by 4%. However, when observing revenue at current rates, the picture darkens: sales decreased by 1% to €4.1 billion. This disconnect between operational dynamics and financial results is entirely due to the deterioration of currency parities, which impacted revenue by €290 million for the quarter.
Regional Realities Diverge
The group's performance reveals a company facing divergent regional realities. Asia excluding Japan, growing by 2%, maintains a positive trajectory fueled by slight growth in Greater China and sustained momentum in Korea. However, activity in the rest of the region remains mixed. In America, the 17% growth continues the momentum of an exceptional year in 2025, with balanced growth across all sectors in the United States, Canada, and South America. Europe excluding France continues its solid performance (+10%), supported by local demand. In contrast, France suffers from a slowdown in tourist flows, particularly pronounced in March due to events in the Middle East, resulting in a 3% decline. The Other zone, hit hard by geopolitics from March onwards, records a 6% drop, affected in the United Arab Emirates, Kuwait, Qatar, and Bahrain. The group's in-store activity continues to grow by 7%, but wholesale sales have been significantly impacted by the decline in sales to dealers, particularly in the Middle East and at airports.
Navigating Uncertainties with Strategic Focus
Faced with a context of economic, geopolitical, and monetary uncertainties, the group affirms its intention to pursue a medium-term goal of revenue growth at constant rates, which it describes as ambitious. Heading into 2026, Hermès relies on its highly integrated artisanal model, balanced distribution network, creativity of its collections, and customer loyalty. In terms of expansion, Hermès continues to strengthen its production capacities in France, with the inauguration in early April of the group's twenty-fifth leather goods facility in Loupes, Gironde, and the announcement of three future openings in Charleville-Mézières (horizon 2027), Colombelles (horizon 2028), and Les Andelys (horizon 2030). The watchmaking sector will also benefit from an extension of its site in Le Noirmont, Switzerland by 2028. In the first quarter, the group repurchased 31,487 shares for €60 million, excluding movements under its liquidity contract. At the beginning of 2026, Hermès distributed €328 million to its employees for the 2025 results, including profit-sharing, incentives, and a bonus of €3,000 to all group employees. The group also published its social policies in March derived from the Hearts & Craft model and continues its climate actions, having achieved 100% renewable electricity and 77% renewable energies worldwide.
