Axel Dumas, CEO of Hermes, commented: “In a tense geopolitical environment, Hermes stays the course, true to its long-term strategy. Supported by its abundant creativity, its uncompromising quality and the loyalty of its customers.”
Hermes reported revenue of €4.1 billion (~$4.84 billion) in the first quarter of 2026, up 6 percent at constant exchange rates, although down 1 percent due to currency impact. Growth was led by America, Japan and Europe. Leather goods and textiles performed well, while retail sales rose 7 percent. Despite geopolitical pressures, the group remains confident, backed by strong demand.
He highlighted 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 force,” 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 percent increase, while Japan grew 10 percent thanks to strong domestic demand. Europe, excluding France, rose 10 percent, although France saw a 3 percent drop due to weaker tourist flows linked to tensions in the Middle East, Hermes said in a news release.
The Asia-Pacific region excluding Japan recorded modest growth of 2 percent, while the Middle East region declined amid geopolitical disruptions.
Across all business segments, Leather Goods and Saddlery led performance with 9 percent growth, supported by strong demand and increased production capacity. Silk and Textiles increased by 8 percent. Ready-to-wear and accessories remained stable.
Retail sales at Hermes stores rose 7 percent, reflecting sustained demand from local customers, although wholesale activity was affected by lower sales at concession stores, particularly in travel retail and the Middle East.
The company continued to invest in its craft 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 percent renewable electricity and 77 percent renewable energy globally, while strengthening its supply chain commitment to reducing emissions.
Looking ahead, Hermes reaffirmed its ambition to increase revenue at constant exchange rates in the medium term. The group continues to rely on its integrated business model, its balanced geographical presence and its strong brand value to face the current economic and geopolitical uncertainties.
Fiber2Fashion News Desk (SG)
