Hermès posts 5.5 percent Q3 sales growth driven by Europe and Americas

French luxury group Hermès reported a 5.5 percent increase in third-quarter revenue on Thursday, supported by Europe, the Americas and Japan. The company also confirmed its full-year forecast “despite the deteriorating macroeconomic and geopolitical environment”.

Known for its silk scarves and leather handbags, the brand saw sales reach approximately 4.1 billion euros (4.61 billion dollars), according to a press release. This figure was driven by its leather goods and saddlery division, though it fell slightly below market analysts' expectations.

Declining results in China

While the market is closely monitoring sales trends in China, Hermès reported a third-quarter downturn in the country. The region was long a key growth driver for the luxury sector, although it has experienced a slowdown over the past two years.

During a press briefing on Thursday, Eric du Halgouët, executive vice president of finance at Hermès, noted a challenging macroeconomic environment in China. He pointed to a property market that is “still declining” alongside “a level of confidence that remains low and leads to a high savings rate”. These factors are compounded by new tax legislation for Chinese taxpayers.

Nevertheless, he emphasised: “We mentioned at the end of June that Greater China was experiencing slight growth. By the end of September, business certainly dipped slightly in the third quarter, yet activity remains stable, which is still a significant achievement in this very challenging market.”

“We are confident about the long term in China; we have a very high-quality network with only 31 stores, so we are continuing to invest,” he added.

In the medium term, “despite global economic, geopolitical and monetary uncertainties”, Hermès confirmed “an ambitious goal for revenue growth at constant exchange rates”.

In the third quarter, group sales in the Asia-Pacific region excluding Japan rose by 3.8 percent year-over-year, though they remained stable at constant exchange rates. Conversely, revenue in Japan grew by 3.4 percent at current exchange rates, jumping by 9.6 percent excluding currency effects.

In the Americas, a key growth region for luxury, sales climbed by 10.7 percent with “solid growth across all countries and business lines”, according to the group.

Europe excluding France also showed strong momentum (+8.6 percent), while revenue in France gained 3.6 percent compared to the third quarter of 2025. Sales in leather goods and saddlery, the core business of Hermès, surged by 12.4 percent to 1.9 billion euros, driven in particular by new models. Conversely, the ready-to-wear and accessories division saw its revenue decline by 1.4 percent to 1.1 billion euros, impacted by demand in mainland China.