France’s Hermes posts steady Q1 growth despite currency headwinds

French luxury goods company Hermes has delivered resilient performance in the first quarter (Q1) of 2026, reporting consolidated revenue of €4.1 billion (~$4.84 billion), up 6 per cent at constant exchange rates despite a complex geopolitical backdrop. However, adverse currency movements, which had a €290 million (~$342.2 million) negative impact, led to a slight 1 per cent decline in reported sales.

Axel Dumas, executive chairman of Hermes, commented: “In a tense geopolitical environment, Hermes maintains its course, true to its long-term strategy. Supported by its abundant creativity, its uncompromising quality and the loyalty of its clients.”

Hermes has reported revenue of €4.1 billion (~$4.84 billion) in Q1 2026, up 6 per cent at constant exchange rates, though down 1 per cent reported due to currency impact.
Growth was led by the Americas, Japan and Europe.
Leather goods and textiles performed strongly, while retail sales rose 7 per cent.
Despite geopolitical pressures, the group remains confident, supported by strong demand.

He emphasised that the company continues to pursue profitable growth with confidence despite global uncertainties. “The fundamentals of the Hermes model are more than ever a differentiating strength,” added Dumas.

Regionally, growth was driven by the Americas, Japan and Europe excluding France, which recorded double-digit increases. The Americas stood out with a 17 per cent rise, while Japan grew 10 per cent on strong domestic demand. Europe excluding France rose 10 per cent, although France saw a 3 per cent decline due to weaker tourist flows linked to Middle East tensions, Hermes said in a press release.

The Asia-Pacific region excluding Japan posted modest growth of 2 per cent, while the Middle East region declined amid geopolitical disruptions.

Across business segments, Leather Goods and Saddlery led performance with 9 per cent growth, supported by strong demand and increased production capacity. Silk and Textiles rose 8 per cent. Ready-to-wear and accessories remained stable.

Retail sales in Hermes stores increased 7 per cent, reflecting sustained demand from local clients, although wholesale activity was impacted by lower sales in concession stores, particularly in travel retail and the Middle East.

The company continued to invest in its artisanal and production capabilities, opening a new leather goods workshop in France and planning additional sites through 2030. It also advanced its sustainability agenda, achieving 100 per cent renewable electricity and 77 per cent renewable energy globally, while strengthening supply chain engagement to reduce emissions.

Looking ahead, Hermes reaffirmed its ambition for revenue growth at constant exchange rates in the medium term. The group remains confident in its integrated business model, balanced geographic presence and strong brand equity to navigate ongoing economic and geopolitical uncertainties.

Fibre2Fashion News Desk (SG)