Hermes International Societe en commandite par actions Q2 2026 Earnings Recap

Shares fell 8.6% following the earnings release as investors reacted negatively to the decline in the perfume and beauty segment and cautious remarks on the Middle East market, despite solid revenue growth and margin stability.

Key Takeaways

• Revenue grew 6% at constant exchange rates to EUR 8.2 billion, with Q2 accelerating to +7%.
• Operating margin remained very high at 41%, supported by continued investment in production capacity and strict quality control.
• Leather goods led growth at +10%, alongside strong performance in silk and textiles (+10%) and clothing/accessories (+2%).
• Perfume and beauty sales declined 4%, marking a notable weak spot.
• The Middle East region saw a slight sales drop (-4%), weighed down by geopolitical instability despite resilience in other geographies.