Hermès International (RMS) Q1 2026 TU earnings summary

Executive summary

• Consolidated revenue reached €4.1 billion in Q1 2026, up 6% at constant exchange rates, but down 1% at current rates due to a €300 million negative currency impact.

• Double-digit growth in Americas (+17%), Japan (+10%), and Europe excluding France (+10%), while France (-3%) and the Middle East (-6%) struggled due to geopolitical issues.

• Store sales rose 7%, while wholesale activity was significantly affected by lower sales to concessionaire stores, especially in the Middle East and airports.

• Growth in Greater China was slight, with Korea and India performing well, but Singapore and Thailand more subdued.

• The company remains committed to its long-term strategy, emphasizing creativity, quality, and customer loyalty.

Financial highlights

• Retail sales grew 7% year-over-year, while wholesale declined 7%, mainly due to travel retail and concessionaire disruptions.

• Leather Goods and Saddlery grew 9%, Silk and Textiles up 8%, Other Hermès Divisions up 7%, while Ready-to-wear and Accessories were flat.

• Perfume and Beauty remained stable, Watches declined 4%.

• Q1 2026 revenue breakdown: Europe €885M, Asia €2,285M, Americas €739M, Other (Middle East) €160M.

• The Middle East accounted for 4.3% of total revenue; the regional impact from store closures and reduced tourist flows was estimated at 1.5% of group revenue for Q1.

Outlook and guidance

• The outlook for 2026 remains unchanged, with an ambitious goal for revenue growth at constant exchange rates.

• Annual growth objectives for Leather Goods (6% volume and sales) are reaffirmed, with expectations for acceleration in coming months.

• Store expansion plans include around 20 projects for the year, expected to contribute just over 1% to annual sales growth.

• Confident in long-term strategy, supported by integrated artisanal model, creative collections, and loyal clientele.