Hermès Stays in the Saddle in Q3 2026 as Leather Goods Lead

Hermès’ coveted handbags continue to do the heavy lifting, with Leather Goods and Saddlery remaining a key driver of growth. In the third quarter of 2026, Hermès reported revenue of €4.1 billion, up 4% at constant exchange rates (6% at current rates) year-on-year. Sales were in line with Q2, while growth in Leather Goods and Saddlery accelerated slightly during the quarter.

Looking at the first nine months of 2026, Hermès reported revenue of €12.3 billion, representing an increase of 6% at constant exchange rates (3% at current rates) over the same period in 2025.

Executive Chairman Axel Dumas commented:

“Despite a complex environment, Hermès continues its profitable growth and maintains its course. Convinced of the strength and relevance of our artisanal model, we see our vision as firmly rooted in the long term, and we look to the future with confidence.”

All regions recorded growth in Q3, with the exception of the Middle East. For the first nine months of 2026, the Americas grew 13%, compared with 15% in the first half. Hermès attributed the slightly slower growth in Q3 to a more challenging comparison with the same quarter last year, rather than to the new wishlist system introduced in the US, which it said had no significant impact.

Europe excluding France grew 9% over the first nine months of 2026, with all countries in the region recording growth. Italy, the UK, Spain, Turkey, Austria, Portugal and Greece achieved double-digit increases, with Southern Europe providing much of the momentum. The UK accelerated in Q3, driven by the opening of Hermès’ new Maison at 166 New Bond Street in London on June 16. The store has exceeded expectations, generating higher revenue than the Maison’s previous London boutiques. An influx of American and Middle Eastern visitors towards the end of summer also supported results in the UK and Italy.

In France, revenue grew 4% in Q3, supported by continued momentum along the French Riviera. Paris was slower over the summer, with Hermès attributing a drop in footfall partly to the heatwave, although spending by local clients continued to grow. European and American tourists also contributed, while Middle Eastern visitors returned towards the end of summer, albeit in slightly lower numbers than in 2025. Looking ahead, the Maison said it was too early to assess the impact of recent demonstrations on store performance. Its Marseille store, which was attacked during the unrest, sustained damage and will remain closed for the foreseeable future.

Asia excluding Japan increased 2%, with Korea delivering a solid performance while Greater China remained stable. In China, subdued consumer confidence, a weaker property market and lower footfall continued to weigh on demand. Hermès noted that this particularly affected watches, shoes and fashion accessories, with stronger performance in Leather Goods and Jewellery helping to offset the impact. Japan recorded a stronger growth of 11%. The Other geographical area, which mainly includes the Middle East, declined 4%.

Leather Goods and Saddlery posted a 10% increase, driven by strong demand for both new models and iconic pieces. Recent additions include the Double Longe, Besace Attelée and Bride de Jour.

Hermès continues to expand its production capacity, having increased leather goods production by 6% in 2026. The Maison inaugurated its twenty-fifth leather goods workshop in Loupes, Gironde, in April, with three further workshops planned in Charleville-Mézières by 2027, Colombelles by 2028 and Les Andelys by 2030. These investments reinforce Hermès’ presence across France while supporting employment and training in eleven regions.

Performance across other métiers was more mixed. Silk and Textiles advanced 7% for the first nine months, down from 10% at the half-year mark. Ready-to-Wear and Accessories increased 1%, compared with 2% in the first half, while Other Hermès sectors, including Jewellery and the Home Universe, recorded 3% growth, down from 5%.

During the Q&A segment of the financial presentation, Eric du Halgouët, Executive Vice President Finance at Hermès, was asked about a potential 6% price increase in 2027, slightly below the increase implemented in 2026. He explained that the Maison would follow its usual approach, seeking to reflect rising material and labor costs, particularly in the eurozone, while also taking currency fluctuations into account. While price adjustments are expected, no specific percentage for 2027 has been confirmed.

Despite an uncertain economic and geopolitical environment, Hermès confirmed its ambitious medium-term revenue growth.

Looking ahead, the Maison is also preparing for a new chapter in its creative direction, with Grace Wales Bonner’s first men’s ready-to-wear collection and the introduction of Couture by Nadège Vanhée scheduled for January 2027.

Do you think Hermès can maintain its handbag momentum into 2027? Share your thoughts.

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