Hermès reported that its sales rose by 6.7% at constant exchange rates, reaching €4.1 billion in the second quarter of 2026. This was roughly in line with what analysts had expected, the company said on Wednesday.

This marks a slight pickup compared to the first quarter, mainly driven by faster growth in France, Japan, and the Middle East. (For context, Hermès missed Q1 expectations by 1.4%, with sales up 5.6% year-on-year. That was a slowdown from Q4 2025, which caused the stock to drop 12%.) The company’s EBIT margin for the first half of 2026 came in at 41%, above the consensus forecast of 40.4%. Still, Hermès shares were down 7.5% in Wednesday morning trading.

The luxury brand continues to outperform the industry in the first half of 2026, though at a slower pace than in 2025. On Monday, LVMH reported group sales up 3%, with its fashion division up 1%. On Tuesday, Kering said it returned to growth (up 2% to €3.65 billion), with Gucci’s sales decline narrowing to 2%. Richemont continued to beat expectations, with sales up 20% to €6.3 billion in its first quarter.

By category, Hermès’ leather goods and saddlery grew 10.2% in the second quarter; ready-to-wear and accessories rose 3.6%; silk and textiles increased 12.2%; and other Hermès sectors, including jewelry and home, were up 4%. Watch sales grew 4.4%, but perfume and beauty fell 9.5%. “There’s a difference between perfume and beauty: beauty is doing well, and perfume is doing well in our stores, but outside our stores it’s more complicated. I think we need to work on that,” explained executive chair Axel Dumas.

Asked about the impact of wildfires in southwest France on production — Hermès has two leather goods factories in Gironde — Dumas said: “Our leather goods workshops were far enough from the fires, so our production facilities haven’t been affected. However, the people have been deeply impacted. Some of our employees at our factory near Fontainebleau [outside Paris, which was affected by a separate wildfire earlier in July] went to help evacuate horses. Others, especially our employees in Gironde, weren’t personally affected but had family members who had to evacuate. Our thoughts are very much with them.”

He continued: “The overall impact on our business will be limited, because our production facilities haven’t been affected. But the stress and tension our employees have experienced are significant. It will have an effect.”

By region, Hermès reported sales up 13.7% in the Americas; up 8.3% in Europe, excluding France; and up 6.2% in France. Asia-Pacific, excluding Japan, was up 2.5%, with South Korea driving growth. Sales in Japan rose 12.3%, and the “Other” region, which includes the Middle East, was down 2.4%.

On trends seen so far in Q3, the Hermès executive team said that the US, Japan, Korea, and Europe remain similar. “The question remains on France, but, as we mentioned, there’s an improvement in Q2 versus Q1. And the question is also on the Middle East, where nobody can predict what will happen,” said Éric du Halgouët, executive VP of finance. According to Visible Alpha consensus, Hermès is expected to grow 7.1% for the full year.

“In the second half of the year, Hermès will stay the course, remaining true to its long-term vision while continuing to strengthen its investments across all business segments and in every geographic region,” Dumas told analysts, noting upcoming US store openings in Chicago and Brooklyn, as well as expansions in Rio de Janeiro, Chengdu, and Geneva.

“We expect more to write home about, as Hermès raises the bar on the high-end and accelerates newness,” wrote Luca Solca, luxury goods analyst at Bernstein. Dumas confirmed: “[Hermès] will reach a new milestone in its development with the presentation of our first couture collection in Paris in January 2027.”

Frequently Asked Questions
Here is a list of FAQs about Herms reporting a 67 increase in sales in the second quarter

BeginnerLevel Questions

Q Did Herms just say their sales went up
A Yes Herms reported that their sales in the second quarter were 67 higher than the same period last year

Q Is 67 a good number for a company like Herms
A Yes its solid It shows that people are still buying their luxury goods even when the economy is uncertain Its a sign of strong demand

Q Does this mean their bags got cheaper
A No It means they sold more products overall or they sold more expensive items The increase is in total sales value not necessarily lower prices

Q Why is this news important
A Herms is a major luxury brand When they do well its a good sign for the whole luxury market It shows that very highend brands are still growing

AdvancedLevel Questions

Q How does Herms 67 growth compare to other luxury brands like LVMH or Gucci
A Its much better Many other luxury brands have reported slowing sales or even declines Herms growth stands out because it shows their customers are less affected by economic downturns

Q What drove the 67 increase Was it handbags or other products
A The growth was broadbased It was driven by strong demand for leather goods readytowear clothing and silk scarves No single category was the only reason

Q Which region contributed the most to this sales growth
A Strong growth came from the Americas and Europe Sales in Asia were more mixed but still positive overall Japan also had a very good quarter

Q Does this mean Herms is raising prices again
A While price increases are a factor for all luxury brands the 67 growth was primarily driven by volume and a good product mix not just price hikes Herms is known for smaller more strategic price increases than its competitors