Hermès reported a 4.3% year-on-year sales rise to €4.1bn in Q3, missing analyst expectations of 5.2%. While leather goods surged 10.8%, fashion and accessories sales fell 2% amid a 'challenging' economic backdrop in China and the Middle East. The luxury group reaffirmed its medium-term growth outlook, though shares dropped nearly 6% at open, down 39% year-to-date.
CFO Eric du Halgouët noted weak China footfall but confidence in long-term potential. Analysts warn of widening performance gaps between divisions, with watches down 6% and silk/textiles up just 1.4%. Competitors LVMH and Kering also face headwinds, while Richemont outperforms on jewellery demand.
Source: Financial Times Companies · Summarized by HeadlinesBriefing