BIZBusiness NO. ---

Hermès Q3 sales growth slows to 4.3%, weakest since early 2020

Hermès grew third-quarter revenue 4.3% at constant exchange rates to €4.1 billion, missing forecasts. Asia-Pacific excluding Japan was flat and ready-to-wear and accessories fell as Chinese shoppers cut back, while Birkin and Kelly leather goods still grew 10.8%.

By Rowan Ashby Published 22.10.26 13:15 UTC 7 min read

Exterior of the Hermès store on Avenue George V in Paris's 8th arrondissement — Moonik / Wikimedia Commons / CC BY-SA 3.0 · Source

Key takeaways

Hermès Q3 sales reached €4,096 million in the three months to 30 September 2026, up 4.3% at constant exchange rates and 5.5% at current rates, according to the company's release on 22 October.
Reuters reported that this was below the 5.2% growth analysts expected in a Visible Alpha poll, and the weakest quarterly growth since early 2020.
Asia-Pacific excluding Japan, the group's largest region, showed 0.0% growth at constant exchange rates, down from 2.5% in the second quarter.
Ready-to-wear and accessories fell 2.0% at constant rates. The finance chief linked this mainly to weaker Chinese demand for lower-priced accessories. Leather goods still grew 10.8%.
Reuters reported that the shares fell about 5% in early Paris trading on 22 October, taking the year-to-date loss to about 36%.

Hermès Q3 sales rose 4.3% at constant exchange rates to €4.1 billion, the weakest growth since early 2020, Reuters reported. Asia-Pacific excluding Japan, the group's largest region, posted 0.0% growth and Chinese shoppers cut back on accessories, though Birkin and Kelly leather goods grew 10.8%.

The figures came 10 days after LVMH reported a fall in its fashion and leather goods sales, which it also linked to China. The pressure is no longer limited to luxury brands with weaker pricing power.

Hermès Q3 sales: the headline numbers

Hermès reported revenue of €4,096 million for the third quarter, compared with €3,881 million a year earlier. That is growth of 5.5% at current exchange rates and 4.3% at constant exchange rates, the measure the company uses to track its underlying performance.

Over the first nine months of 2026, revenue reached €12,260 million. That is up 5.5% at constant exchange rates but only 2.9% at current rates. The company said currency movements cut about €310 million from nine-month revenue.

Reuters reported that analysts polled by Visible Alpha had expected third-quarter growth of 5.2%. The news agency said this was the weakest quarterly growth since early 2020, when boutiques closed during the pandemic.

How Q3 compares with Q2, by region and business line

The table below sets the third quarter against the second quarter, using growth at constant exchange rates from the company's two releases.

Segment	Q3 2026 revenue (€m)	Q3 2026 growth, constant FX	Q2 2026 growth, constant FX
Group total	4,096	+4.3%	+6.7%
France	417	+3.6%	+6.2%
Europe (excl. France)	687	+9.5%	+8.3%
Japan	402	+9.6%	+12.3%
Asia-Pacific (excl. Japan)	1,650	0.0%	+2.5%
Americas	791	+8.8%	+13.7%
Other (Middle East)	149	-4.5%	-2.4%
Leather Goods and Saddlery	1,912	+10.8%	+10.2%
Ready-to-wear and Accessories	1,141	-2.0%	+3.6%

Source: Hermès International, third-quarter 2026 revenue release (22 October 2026) and 2026 half-year results release (July 2026). Data as of 22 October 2026.

Two trends stand out. First, the slowdown was broad but uneven. Europe excluding France sped up, while the Americas and Japan stayed strong but grew more slowly than in the spring. Second, the weakness was concentrated in one region. Asia-Pacific excluding Japan generated €1,650 million, about 40% of group revenue, so a flat quarter there pulls down the group figure.

In reported euros, the region grew 3.8% because of currency effects. At constant rates, which strip out exchange rate movements, it did not grow at all.

Other business lines

Silk and textiles grew 1.4% at constant rates in the quarter. Other Hermès sectors, which include jewellery and home, fell 1.1%. Watches fell 6.0%. Perfume and beauty rose 7.5%, and other products rose 10.5%, according to the release.

What Hermès said about China

China is Hermès's largest single market, Reuters reported. Chief financial officer Éric du Halgouët said activity there "admittedly softened slightly in the third quarter, but it remains stable", according to the Reuters report. On the analyst call, he said Greater China was "pretty much stable compared to last year", according to a transcript published by Investing.com.

He described the cause as a consumer confidence problem rather than a brand problem. "Consumer trust in China is still quite low, with a very high savings rate," he said on the call, adding that the "volume divisions" were the ones suffering. He named fashion accessories, watches and shoes as categories hit by lower footfall from Chinese shoppers.

That explains the first decline in years for ready-to-wear and accessories, which account for more than a quarter of sales. Reuters reported that items such as belts, gloves and hair clips are often the entry point for less wealthy customers. According to du Halgouët, the division grew in every other region. Ready-to-wear on its own, including in China, still grew during the quarter.

On the call, the finance chief said trading in October had shown "no change in trends", including in China. He said Hermès remains confident about China's potential over the medium and long term and will keep investing there. In September, the company opened an expanded store at the Taikoo Li mall in Chengdu.

Where growth held up

Leather goods remained the engine. The division, home to the Birkin and Kelly bags, grew 10.8% at constant rates to €1,912 million. Reuters reported that du Halgouët called Birkin desirability "intact". He said the company plans to keep raising overall production by about 6% a year in the coming years.

The Americas grew 8.8%. Reuters reported that Hermès has opened new stores in second-tier US cities, and that the finance chief said all US stores and all product categories grew. Recent openings include stores in Chicago and in Williamsburg, Brooklyn, according to the company's press releases.

In France, Reuters reported that a Hermès store in Marseille was looted during the recent unrest, which Bullquill covered in its report on Europe's cost-of-living protests and the riots in France. The company said it is reinforcing security and that it is too early to judge any significant impact on business.

The wider luxury slowdown

Hermès is not the only luxury group feeling the change in China. On 12 October, LVMH reported third-quarter revenue of €18,504 million, with group organic growth of 1%. Its Fashion and Leather Goods division fell 5% on an organic basis. LVMH said that business was "affected in the third quarter by the slowdown in demand in China."

The two results show a difference of degree. LVMH's main fashion division shrank, while Hermès still grew leather goods by double digits and the group by more than 4%. For Hermès, the question is whether a premium valuation can hold as growth slows. In July, its shares had their sharpest one-day drop in more than 15 years, falling about 10.5%, after second-quarter results. Asia-Pacific excluding Japan had grown only 2.5% that quarter, and management reported no fundamental recovery in China, according to a GuruFocus report on the session.

Reuters cited analysts who said the Hermès valuation, built on a decade of strong growth, could move closer to industry averages if growth stays slower. Resellers told the news agency that Birkin bags have become easier to find on the secondhand market. For background on how European luxury stocks have traded recently, see Bullquill's Europe stocks daily brief, China and Hong Kong stocks daily brief and Asia and Europe markets wrap.

Pricing and what comes next

On the call, du Halgouët said 2027 price increases would probably be slightly smaller than those in 2026, and that the level had not yet been set. Hermès said it is keeping its ambitious medium-term goal for revenue growth at constant exchange rates. It did not give a numerical forecast for the full year.

In the first nine months, the company bought back 94,846 shares for €160 million, excluding its liquidity contract. Full-year 2026 results are due on 12 February 2027, and first-quarter 2027 revenue on 22 April 2027.

What it means

The quarter suggests that China's luxury slowdown now reaches even the brand most often seen as immune to it. The damage is selective. Hermès's core leather goods, which are limited by production capacity and sold to its wealthiest clients, are still growing at about 10%. The softness is in the cheaper entry-level categories that depend on store traffic and on the confidence of aspiring buyers.

Three things remain unknown. It is not yet clear whether the Greater China stability the company describes will hold through the holiday season. It is also unclear how far smaller price increases in 2027 might affect margins. Finally, it remains to be seen whether demand in the US and Europe can keep making up for a flat Asia. The company said October trends were unchanged. The next update comes with full-year results in February.

Frequently asked questions

How much did Hermès sell in the third quarter of 2026?

Hermès reported revenue of €4,096 million for July to September 2026, up 4.3% at constant exchange rates and 5.5% at current rates from €3,881 million a year earlier.

Why did Hermès sales growth slow?

The company's largest region, Asia-Pacific excluding Japan, showed no growth at constant exchange rates. According to Reuters and the earnings call, the finance chief linked the weakness to low consumer confidence in China, which hit lower-priced 'volume' categories such as fashion accessories, watches and shoes.

Are Birkin and Kelly bag sales still growing?

Yes. Leather Goods and Saddlery, which includes the Birkin and Kelly bags, grew 10.8% at constant exchange rates in the third quarter, to €1,912 million.

How did LVMH do in the same quarter?

LVMH reported third-quarter 2026 revenue of €18,504 million, with group organic growth of 1% and a 5% organic decline in Fashion and Leather Goods, which it linked to slowing demand in China.