PARIS – Amid the luxury slowdown, Hermès International showed continued strength with sales in the first quarter up 7 percent at constant exchange rates to 4.13 billion euros.
The numbers fell slightly short of analysts’ expectations, which had forecast the gain at 8 percent to 4.2 billion.
While Hermès has outpaced its French luxury rivals such as LVMH Moët Hennessy Louis Vuitton, which reported sales down 2 percent on Monday, it marks a deceleration from the fourth quarter, when the company’s sales grew 18 percent.
“In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever,” Hermès chief executive officer Axel Dumas said in a statement. “Despite a high comparison basis in the first quarter, the group achieved solid growth in sales.”
He highlighted the group’s vertically integrated model as one of its core strengths.
The result “confirms a slower consumer demand environment,” Bernstein analyst Luca Solca wrote in a research note.
The U.S. showed robustness, up 11 percent at constant exchange, particularly “solid momentum” in March, even as tariff uncertainty gripped the market.
Sales in Europe were up 13 percent, excluding France. Hermès’ home country showed robust numbers of 14 percent growth, which the company chalked up to “sustained local demand and dynamic tourist flows.”
The Middle East continued to gain momentum, up 14 percent at constant currency, while Japan saw sales jump 17 percent in the quarter, driven by local clients.
The rest of Asia proved to be the weakest point, with sales up just one percent on the continued weakness of China.
For the leather goods division, sales at constant currency were up 10 percent, boosted by the new bag designs Médor and Mousqueton, while sales of its ready-to-wear continued to be a dark horse in the house, up 7 percent in the quarter.
Silk and textiles, which includes the house’s famous scarves, were up 5 percent, while jewelry was up 6 percent.
Sales in the fragrance and beauty division were flat.
Watches were the weakest link, with the category down 10 percent in the quarter, despite the introduction of two new models during the Watches and Wonders fair in Geneva, and updated version of its classic H08.
The company is continuing its expansion, and will open three new production facilities in France over the next three years.
Sales were up 9 percent with currency fluctuations taken into account, which boosted the company’s bottom line by 49 million euros in revenue.
“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 company said in a statement.
“In a more uncertain economic and geopolitical context, the group has moved into 2025 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.”