Hermès Holds Its Course as Leather Goods Lead Nine Months of Growth

Hermès reported on Oct. 22 that its consolidated revenue for the first nine months of 2026 reached 12.3 billion euros, up 6% at constant exchange rates and 3% at current exchange rates compared with the same period in 2025. Third quarter sales came to 4.1 billion euros, in line with the second quarter, up 4% at constant exchange rates and 6% at current exchange rates.

The Paris house said all regions grew except the Middle East, which it described as slightly down, "despite the deteriorating macroeconomic and geopolitical context."

Leather Goods Carries the Quarter

Leather Goods and Saddlery, the house's largest business, rose 10% at constant exchange rates through September to 5,673 million euros. Hermès said the division showed "a slight acceleration in the third quarter," and its table shows third quarter leather sales of 1,912 million euros, up 10.8% at constant rates.

The company pointed to new models including the Double Longe, Besace Attelée and Bride de Jour. It opened its twenty fifth leather goods workshop in Loupes, in Gironde, in early April, and said three more will follow: Charleville-Mézières by 2027, Colombelles by 2028 and Les Andelys by 2030.

Silk and Textiles grew 7% over nine months. Ready to wear and Accessories rose 1%, Perfume and Beauty slipped 1%, and Watches fell 2%. The Other Hermès sectors, which include jewellery and home, rose 3%.

Where the Growth Came From

By region, the Americas led with growth of 13% at constant exchange rates over nine months, and Hermès reported new stores at Plaza del Lago in Chicago and in Williamsburg, New York, along with a renovated San Diego store. Japan rose 11%, and Europe excluding France rose 9%, helped by the new Maison at 166 New Bond Street in London that opened on June 16.

Asia excluding Japan grew 2%, with Greater China described as stable "in a more difficult context." France rose 2%. The Other area, mainly the Middle East, fell 4%. Hermès said currency movements reduced revenue by about 310 million euros over the nine months.

The Third Quarter on Its Own

Taken alone, the third quarter shows a slightly different picture. According to the tables in the release, the Americas rose 8.8% at constant exchange rates to 791 million euros, Japan rose 9.6%, and Europe excluding France rose 9.5%. Asia Pacific excluding Japan, the largest region at 1,650 million euros, was flat at constant rates, and the Middle East fell 4.5%.

By business, quarterly Perfume and Beauty sales rose 7.5% at constant rates, in line with the company's note of an improvement in the third quarter, while Watches fell 6.0% and Ready to wear and Accessories slipped 2.0%.

Stores, Craft and Capacity

Hermès listed a run of retail openings this year, including the new Sanlitun store in Beijing in April, the renovated Hilton Plaza East store in Osaka in May and a new Nagoya location in June. On the production side, it said the watchmaking site in Le Noirmont, Switzerland, will be expanded by 2028, and that its leather workshop network supports employment and training in eleven French regions.

The company also said the rating agency MSCI confirmed its AA rating in August, and that it has launched two pilot projects on soil and freshwater under the Science Based Targets for Nature initiative.

What Comes Next

Executive Chairman Axel Dumas said: "Despite a complex environment, Hermès continues its profitable growth and maintains its course." He added that the house is preparing for "the first men's ready-to-wear collection signed by Grace Wales Bonner and the introduction of Couture by Nadège Vanhée next January."

In its outlook, the group said it "confirms an ambitious goal for revenue growth at constant exchange rates" in the medium term. It also said it bought back 94,846 shares for 160 million euros during the first nine months. Hermès plans to publish full year 2026 results on Feb. 12, 2027.

The Takeaway

The release shows a house leaning on its leather workshops and its American clients while China holds steady and the Middle East softens. With Wales Bonner's menswear and Vanhée's couture debut set for January, the next set of figures will show whether new creative chapters add to a business that, by its own account, is still growing at constant exchange rates.