Hermès Q1 Revenue Up 5.6% but Misses Expectations

Hermès International, the French luxury goods maker known for its Birkin bags and silk scarves, reported first-quarter 2026 revenue of 4.07 billion euros on Wednesday, a 5.6 percent increase at constant exchange rates from the prior year but below analyst expectations of around 7 percent growth. The results, released in Paris, triggered a sharp market reaction, with shares falling more than 13 percent in early trading and erasing over 20 billion euros from the company's market value.

The shortfall stemmed primarily from geopolitical tensions in the Middle East, currency fluctuations and reduced tourist spending. At reported exchange rates, revenue declined 1 percent year-over-year, as unfavorable currency movements subtracted 290 million euros from the total. Analysts had forecasted revenue closer to 4.16 billion euros.

Regional performances varied widely. The Americas provided a strong offset, with sales rising 17.2 percent at constant rates, driven by balanced growth across the United States, Canada and South America. In contrast, the Middle East saw a 6 percent drop to 160 million euros, affected by the ongoing Iran conflict, which disrupted wholesale sales at airports and...