Hermès shares fall after third-quarter sales

Shares of Hermès fell sharply in Paris on Thursday, 22 October 2026, after the luxury house reported third-quarter sales that trailed analyst forecasts. Der Standard reported an 8% fall, while n-tv said the stock had shed more than 7% in morning trading. Revenue rose 4.3% at constant exchange rates to €4.10bn, against analyst expectations of 5.2%. Jefferies analysts described the session as a very painful day for the stock, and n-tv reported that the share price has lost roughly 40% since the start of the year.

China weakness and the outlook

Chief financial officer Eric du Halgouët blamed China's property market, which is still falling, together with low consumer confidence, a high savings rate and new tax rules for Chinese taxpayers. He said activity had slipped slightly in the third quarter but remained stable, which he called a notable achievement in a very difficult market. Hermès operates 31 stores in China and said it continues to invest there.

“We are confident in the long term in China, we have a very high-quality network, there are only 31 stores, so we continue to invest.”

Hermès kept its full-year outlook despite what it described as a worsening macroeconomic and geopolitical backdrop, and it confirmed an ambitious medium-term target for constant-currency revenue growth. Bloomberg reported that Asia-Pacific excluding Japan, the group's largest market, was flat at constant exchange rates and missed estimates.

Regional figures and category detail

Figures vary by source. Keystone-ATS, carried by SWI swissinfo.ch, reported a 5.5% rise to about €4.1bn, slightly below analyst forecasts. Leather goods and saddlery, the core business, rose 12.4% to €1.9bn. Sales in the Americas climbed 10.7% and in Europe excluding France 8.6%, while France grew 3.6% and Asia-Pacific excluding Japan 3.8% in reported terms. Japan rose 3.4% at current exchange rates and 9.6% excluding currency effects.

Americas10.7%

Europe excl. France8.6%

Japan3.4%

Asia-Pacific excl. Japan3.8%

France3.6%

Americas

10.7 %

Europe excl. France

8.6 %

Japan

3.4 %

Asia-Pacific excl. Japan

3.8 %

France

3.6 %

Data from the article text

Kering and the wider luxury sector

Kering's organic sales fell 1% to €3.3bn in the three months to the end of September, roughly in line with expectations, according to the Financial Times. Gucci revenues fell 6%, weighed down by weak demand in mainland China and Japan, against an analyst forecast of a 2.8% drop. The group's other fashion brands, including Saint Laurent and Bottega Veneta, rose 2%. Chief executive Luca de Meo, who joined from Renault just over a year ago, has been merging the operations of Kering's independent brands, integrating parts of production and centralising some decisions.

“Third-quarter revenue reflects the phasing we anticipated, in a softer macroeconomic environment. The recovery of Gucci remains our defining priority.”

LVMH reported a 1.8% fall in organic sales in October 2026, opening what is expected to be a difficult reporting season for the sector. Hermès results were mixed, according to the Financial Times, and demand has been hit by the conflict in the Middle East and by persistent inflation that has eroded the spending power of aspirational consumers.

Kering group (organic)-1%

Gucci-6%

Kering other fashion brands2%

Hermès (constant exchange rates)4.3%

Kering group (organic)

-1 %

Gucci

-6 %

Kering other fashion brands

2 %

Hermès (constant exchange rates)

4.3 %

Data from the article text