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Hermes, Kering shares sink as Iran war knocks luxury revival
The luxury groups missed sales forecasts as Middle East travel disruption cut tourist spending and Hermes said regional sales fell 6%.
- On Wednesday, shares in French luxury groups Hermes and Kering fell sharply after reporting that Middle East war dampened sales, with Hermes stock dropping as much as 14% in early trade.
- Following US-Israeli strikes on Iran in late February, Kering warned that Middle East revenues fell 11 percent in the first quarter, while travel disruptions kept high-spending tourists from European shopping hubs.
- Chief Financial Officer Eric Halgouet stated that while January and February saw double-digit growth, 'everything stopped' in March as sales in luxury malls in Dubai and other Gulf shopping hubs dropped by 40%.
- Louis Vuitton owner LVMH also reported a sharp slowdown in the region on Monday; despite these challenges, Halgouet claimed the impact on Hermes' profitability remains 'not significant' for the moment.
- On Thursday, Kering CEO Luca de Meo hosts a strategic 'ReconKering' presentation in Florence, Italy, while analysts warn that Gucci's recovery remains uncertain until it appears in official figures.
33 Articles
33 Articles
The markets finally find a lull, despite the persistent tensions in the Middle East. ...
Kering And Hermès Sink As War Batters Earnings; Goldman Warns Luxury Dip-Buying Is “Premature”
Kering And Hermès Sink As War Batters Earnings; Goldman Warns Luxury Dip-Buying Is “Premature” Goldman’s Natasha de la Grense summed it up well this morning: “Money was waiting on the sidelines to buy luxury for a de-escalation play – that feels premature with three misses in three days.” Disappointments from Kering and Hermès, both of...
The French luxury group Hermès saw its action plunge to the opening of the Paris Stock Exchange on Wednesday, April 15. Indeed, the war in the Middle East and the exchange effects greatly affected its sales in the first quarter of 2026. Despite this, in many parts of the world, Hermès recorded a positive growth.
The luxury market dawns with a fall of one of Hermés’ top representatives. Hermés’ shares suffered on Wednesday a record collapse on the Paris Stock Exchange, where they lost up to 14.2% of their value. Hermés’s business located in the Middle East has been significantly affected by recent geopolitical events in the region and exchange rates. But the significant drop in the stock market is attributed mainly to the fact that the French fashion and…
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