Hermès revenue growth slowed in the third quarter of 2026, but its leather goods kept climbing. Hermès International, the French luxury house behind the Birkin and Kelly bags, reported €4.1 billion in sales for July through September on Oct. 22 at 2 a.m. ET.
Leather good sales were up 4.3% from a year earlier at constant exchange rates, a measure that strips out swings in currency values. So this year’s sales can be compared fairly with last year’s. In euros as reported, sales rose 5.5%, to €4.096 billion ($4.60 billion) from €3.881 billion ($4.36 billion).
It’s still growth, just less expected. Analysts had expected about €4.12 billion ($4.62 billion) in sales. The quarter was reportedly the weakest for Hermès growth since early 2020.
Investors weren’t impressed. Hermès shares fell more than 8% in early trading in Paris on Oct. 22 and were still down about 5%, at €1,285.50 ($1,442.60), around 10 a.m. Paris time.
Through the first nine months of 2026, Hermès sales reached €12.26 billion ($13.76 billion), up 5.5% at constant exchange rates and 2.9% as reported. Currency swings cut about €310 million ($348 million) from revenue over those nine months.
“Despite a complex environment, Hermès continues its profitable growth and maintains its course.”
– Hermès Executive Chairman Axel Dumas
Hermès leather goods carry the quarter
Leather Goods and Saddlery grew 10.8% to €1.91 billion in the third quarter at constant exchange rates. Its the division that makes the Birkin and Kelly bags. Hermès called it a slight acceleration and credited strong demand for both new models and its classics. This year’s new bags include the Double Longe, the Besace Attelée, and the Bride de Jour.
The division covers more than handbags, though. It also includes travel items, small leather goods, and riding gear, so it isn’t a pure Birkin count.
Hermès Executive Vice President of Finance Éric du Halgouët told journalists the Birkin’s desirability remains “intact.” He said Hermès would stick with its plan to raise overall production volumes by around 6% a year in the coming years.
That confidence comes as resale signals turn mixed. Brokerage Bernstein found that Birkin 25 bags resold for about 1.7 times their retail price in the third quarter, down from about 2.6 times at the 2022 peak. Our deep dive on how Hermès keeps Birkins rare covers that resale debate.
Where Hermès sales slipped
Ready-to-wear and Accessories, which brings in more than a quarter of Hermès sales, fell 2% to €1.14 billion ($1.28 billion). That reportedly marks the division’s first decline in years. Du Halgouët said the drop came mainly from weak demand in China for high-volume accessories and that the division kept growing in every other region.
Watches fell 6%, and the Other Hermès sectors, which include jewelry and home goods, slipped 1.1%. Perfume and Beauty rose 7.5%, and Silk and Textiles grew 1.4%.
China is the sore spot. Sales in Asia were flat at constant exchange rates. Japan was the exception in Asia as it remains the biggest Hermès region at €1.65 billion ($1.85 billion) for the quarter. Du Halgouët called the Chinese market “very difficult” but said he remained confident in its long-term prospects.
Elsewhere, sales grew 9.6% in Japan, 9.5% in Europe outside France, 8.8% in the Americas, and 3.6% in France. The Other region, mainly the Middle East, fell 4.5% and was the only area to shrink.
What Hermès Q3 revenue means for investors
Hermès shares had already fallen 36% this year before the report. Analysts have flagged investor worries that slower growth could pull the Hermès stock price, long priced at a premium to the rest of the luxury industry, closer to its peers. Hermès didn’t give a numeric forecast. It said it “confirms an ambitious goal for revenue growth at constant exchange rates” in the medium term.
Hermès is also betting on newness. Dumas said the first men’s ready-to-wear collection by designer Grace Wales Bonner and the introduction of Couture by designer Nadège Vanhée are coming in January.
Sources: Hermès Q3 2026 revenue, Reuters, MarketWatch, Reuters on Birkin resale
Money Lesson
Check which growth number is doing the talking
Hermès reported two growth rates for the third quarter. In euros, sales rose 5.5%. At constant exchange rates, they rose 4.3%. The gap came from currency moves, not from shoppers buying more, and analysts judged the quarter on the 4.3%. Over the first nine months, currency worked the other way and cut about €310 million ($348 million) from sales.
Then look inside the total. Leather goods grew 10.8%. Meanwhile ready-to-wear, watches, and jewelry and home goods all shrank. The difference means one division carried most of the quarter. When a global brand reports results, find the constant-currency number first, then count how many divisions are actually growing. A strong total can rest on a single star.
Hermès Q3 2026 Revenue
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