Hermès has shared its Q1 financial results, revealing a decline in revenue as a result of currency fluctuations and the ongoing conflict in the Middle East.
The French luxury goods brand saw sales growth of 6% to €4.1b in the first quarter of 2026, however, at current exchange rates, this figure declined by 1% on a reported basis as a result of currency fluctuations (decreasing €290m).
As a result, share prices in the luxury leader sank by as much as 14% in early trading on 15 April following the release of the results, taking the share price down to the lowest number since January 2023.
Shares have since seen a slight recovery.
In-store sales for the group increased by 7% globally despite the impact on tourism, whereas wholesome activity was significantly affected due to lower sales to concession stores – especially those found in the Middle East and airport shopping destinations.
Strong performances from the Americas (+17%), Japan (+10%) and Europe excluding France (+10%) helped to bolster the brand’s sales, which have been affected in other markets as a result of reduced tourism linked to the current political climate in the Middle East.
This was most notably seen in France (-3%), which experienced a €10m fall to €347m compared to the previous year, and ‘Other’ regions, which primarily includes the Middle East (-6%) and fell from €185m in Q1 2025 to €160m in Q1 2026.
This shows stark contrast to the brand’s 2025 results, which revealed the Middle East as Hermès’ fastest-growing region.
The brand noted that France saw a fall following slowed tourism flow, particularly in March.
Axel Dumas, Executive Chairman of Hermès, commented: “In a tense geopolitical environment, Hermès maintains its course, true to its long-term strategy.
“Supported by its abundant creativity, its uncompromising quality and the loyalty of its clients, Hermès is continuing its profitable growth in 2026 with confidence and conviction.
“The fundamentals of the Hermès model are more than ever a differentiating strength.”
Hermès revealed its Perfume and Beauty sector recorded stable sales, supported by the introduction of its new matte skin care-first foundation, Plein Air, along with new additions to the Jardin fragrance collection.
The category saw a slight fall in figures from €129m in Q1 2025 to €127m in Q1 2026.
Ready-to-wear and accessories also saw a stable performance, with growth in Leather Goods and Saddlery (+9%), Silk and Textiles (+8%), and the brand’s ‘Other’ sector, which includes Jewellery and Home (+7%).
The Watch sector, meanwhile, saw a drop of 4%.
The brand shared in a statement: “In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.
“In a still uncertain economic and geopolitical context, the group has moved into 2026 with confidence, thanks to its highly integrated artisanal model, balanced distribution network, the creativity of collections and the loyalty of clients.
“Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, maintaining control over know-how and singular communication.
“The theme of the year for 2026, Venture beyond, is an invitation to discover new horizons and renew our curiosity, constantly.”
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