Despite geopolitical tensions affecting the Middle East, Hermès, the renowned French luxury fashion brand, has reported a strong performance in its Q1 sales. The company’s consolidated revenue stood at €4.1 billion (US$4.8 billion) for the quarter ending March 31, marking a 6% increase at constant exchange rates. However, on a reported basis, revenue dipped by 1% due to the adverse effects of currency fluctuations.
The company attributed much of its growth to impressive gains in Japan, the Americas, and Europe, excluding France. Japan saw a 10% increase in sales, while the Americas and Europe, excluding France, each reported a 17% and 10% sales increase, respectively.
Sales in Asia, excluding Japan, also rose slightly by 2%, with Greater China maintaining its marginal growth. However, France’s revenue decreased by 3%, a decline influenced by a reduced tourist flow, particularly in March. This downturn is mainly linked to the unfolding situation in the Middle East.
The Middle East, classified under the ‘Other’ region in the company’s report, experienced a 6% decline in sales. The geopolitical developments in countries such as the UAE, Kuwait, Qatar, and Bahrain have had a significant impact on the region’s performance.
Despite these challenging conditions, sales in the group’s stores increased by 7%. In contrast, wholesale activity was significantly affected, recording lower sales to concession stores, especially in the Middle East and airports.
According to Axel Dumas, Executive Chairman of Hermès, the brand remains steadfast in its long-term strategy, even amidst a tense geopolitical environment. The company’s abundant creativity, unwavering quality standards, and loyal customer base enable Hermès to continue its profitable growth trajectory into 2026 with confidence. He further emphasized that the fundamentals of the Hermès model are a distinguishing strength more than ever.
In the medium term, the group has confirmed its goal to achieve revenue growth at constant exchange rates. This is notwithstanding the persistent economic, geopolitical, and monetary uncertainties that pervade the global landscape.
What were Hermès’ consolidated revenue figures for Q1?
The consolidated revenue for Hermès in Q1 stood at €4.1 billion (US$4.8 billion), marking a 6% increase at constant exchange rates.
Which regions reported the most growth for Hermès?
The regions that reported the most growth for Hermès were Japan, the Americas, and Europe (excluding France), with sales increases of 10%, 17%, and 10% respectively.
How did the geopolitical situation affect Hermès’ sales in the Middle East?
The geopolitical situation in the Middle East led to a 6% decline in Hermès’ sales in the region. This was particularly notable in countries such as the UAE, Kuwait, Qatar, and Bahrain.
