Hermès Shares Plunge 14% After Q1 Sales Growth Miss and Regional Slumps
Hermès posted 5.6% Q1 sales growth at constant exchange rates, missing the 7.44% analyst forecast, as shares plunged 14% intraday—the biggest drop on record. Sales fell 5.9% in the Middle East and 2.8% in France, while Asia Pacific rose just 2.2% versus a 5.84% estimate.
1. Q1 Financial Results
Hermès delivered 5.6% first-quarter revenue growth at constant exchange rates, below the 7.44% consensus estimate, triggering a 14% intraday share drop—its largest on record and extending a roughly 30% year-to-date decline.
2. Regional Performance
Sales in the Middle East fell 5.9% and French revenue dropped 2.8% as tourism waned, while Asia Pacific outside Japan posted a 2.2% increase versus an expected 5.84%, reflecting travel disruptions in Southeast Asia and slower growth in Greater China.
3. Management Response and Outlook
CFO Eric du Halgouet noted traffic rebounds after store reopenings in the Middle East—representing about 4% of sales—and reaffirmed investment with the opening of the 25th leather goods plant, signaling commitment despite ongoing geopolitical challenges.