04:45 AM EDT, 07/29/2026 (MT Newswires) -- Hermès (RMS.PA) on Wednesday reported a 6% increase in first-half sales and maintained its medium-term revenue growth projections amid a challenging luxury market and ongoing geopolitical uncertainties. Revenue for the six months ended June 30 rose to 8.16 billion euros, up 6% year over year at constant exchange rates and 2% on a reported basis. Attributable net income was broadly flat at 2.24 billion euros. The Birkin bag maker delivered sales growth across all regions except the Middle East, where sales fell 4.2% to 330 million euros. Revenue in Asia, its largest market, rose 4% at constant exchange rates to 4.33 billion euros, while Europe posted a 6% increase to 1.92 billion euros. By business segment, leather goods and saddlery, its largest division, posted a 9.8% increase in sales at constant exchange rates to 3.76 billion euros. Revenue from the ready-to-wear and accessories business rose 2% to 2.2 billion euros. Hermès affirmed its medium-term guidance for revenue growth at constant exchange rates, "despite the economic, geopolitical and monetary uncertainties around the world." "Hermès reported 2Q26/ 1H26 results before market open today, with Group OSG of +6.7% arriving in-line with consensus expectations. This represents a slight acceleration from 1Q26, driven primarily by France, Japan and the Middle East. EBIT margins came in at 41.1%, +70bps ahead of expectations, driven by higher GM%. FX was a -1.9pts drag this quarter. Currency fluctuations represented a [360 million euros] negative impact on revenue for 1H26, and [70 million euros] for 2Q26," Bernstein said in its quick-take note. "2Q26 is a slight incremental improvement relative to 1Q26, but should be taken with no drama, given the de-rating suffered by Hermès in recent months," Bernstein added. The company's shares were down over 7% in early morning trading in Paris.

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