Hermes reported a 5.6% rise in first-quarter 2026 revenue excluding currency fluctuations. This performance marks a significant deceleration from the 9.8% growth recorded in the previous quarter. The results for the Birkin bag maker fell short of analyst forecasts.
The company attributed the weaker results to the ongoing conflict in the Middle East. This instability dampened tourist flows and consumer spending, particularly within the French market. Reduced spending in the Gulf region impacted a high-margin channel that previously offset weak demand in other regions.
The report mirrors recent weak data from rival luxury group LVMH. These results suggest geopolitical instability is hindering the luxury sector's anticipated 2026 recovery.