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Birkin Bag Maker Hermes Posts 7% Rise in Quarterly Sales
Leather goods drove nearly half of revenue as the company said it was still seeing no fundamental rebound in China.
- On Wednesday, Hermès reported 6.7% sales growth to €4.1 billion for the second quarter, yet shares dropped 10.5% as investors reacted to the company's lack of a fundamental rebound in China, its biggest market.
- Although Hermès remains more resilient than peers LVMH and Kering, growth is slowing as the luxury group grapples with continued weakness in China following a years-long industry slowdown.
- Leather goods, accounting for nearly 50% of revenue, climbed 10.2% to €1.91 billion, while the Americas posted 13.7% growth and Japan delivered 12.3% at constant exchange rates.
- CEO Axel Dumas told reporters he sees the Chinese market "stabilising" but the situation remains "uncertain," while noting improved momentum in Paris stores during the quarter.
- Hermès will present its first couture collection in Paris in January 2027 and open new stores in Chicago, Brooklyn, and Geneva, signaling continued investment amid market uncertainty.
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14 Articles
14 Articles
·London, United Kingdom
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The salter-maroquinier Hermès reported sales up 4.8% in the second quarter to 4.1 billion euros. Over the first half of the year, they increased by 1.6%.
·Gennevilliers, France
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Hermès reported that sales growth accelerated in the second quarter, making the Birkin stock exchange manufacturer the latest sign that luxury companies may be leaving behind years of weak demand. Exclusive material for subscribers. To have full access, access the material link and register.
·Rio de Janeiro, Brazil
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Total News Sources14
Leaning Left3Leaning Right4Center6Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 23%
C 46%
R 31%
Factuality
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