Hermès announced its third-quarter results on Wednesday, October 22, with revenue rising 5% year-on-year to EUR 3.9 billion — “a slight improvement compared to the second quarter, particularly in Europe, the Americas and Asia.” Growth was broad-based across most divisions, except the Watches and the Perfume & Beauty segments, which continued to decline.

“In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,” the group stated in a press release.

Hermès, like its peers, faced headwinds from unfavorable exchange rates, which weighed on reported sales. At constant exchange rates, revenue climbed 10% in the third quarter.

Over the first nine months of the year, sales were up 6.3% to EUR 11.9 billion (8.6% on like-for-like basis).

Sales in Asia excluding Japan rose by 0.3% to EUR 1.59 billion in the third quarter (+6.2% at constant exchange rates) and increased in all countries, particularly in Greater China (i.e., including Hong Kong, Macau and Taiwan).

Revenue in the Americas region increased by 7.2% (14.1% at constant exchange rates) to 714 million euros.

In Europe (excluding France), sales increased by 8.3%, and in France, they surged by 10.4% thanks to "sustained activity in all stores," according to the press release.

Perfume and beauty lag behind

Hermès’s Leather Goods and Saddlery division — the brand’s core business — posted an 8.1% increase in sales to EUR 1.7 billion, fueled by continued demand for its iconic Birkin and Kelly bags and the success of new collections.

Sales in the Ready-to-wear and Accessories business increased by +2% in the third quarter (6.6% at constant exchange rates).

Sales of perfumes and beauty products continued to decline, down 8.6% in the third quarter (-7.2% at constant exchange rates), resulting in a cumulative decrease of 5.6% over the first nine months (-5% at constant exchange rates). The group attributed this decline to a high comparison base following last year’s launch of Barénia.