Hermès shares fall as third-quarter sales miss expectations

Hermès shares dropped significantly following the release of third-quarter sales results that fell short of analyst expectations. The luxury group reported revenue of 4.10 billion euros for the quarter, representing a 5.5% increase compared to the previous year, but missing the 4.13 billion euro consensus. Organic growth slowed to 4.3% during the period.

The company cited a deteriorating macroeconomic environment in China, including a downturn in the real estate sector and new tax policies on offshore wealth, as key factors impacting performance. While leather goods saw organic growth of 10.8%, other divisions such as watches and clothing experienced declines.

Geographically, demand remained robust in the Americas and Southern Europe. However, sales in the Middle East declined due to geopolitical tensions and reduced tourism. Despite the challenges in the Chinese market, where revenue remained relatively stable, the company expressed long-term confidence in the region's potential.