Hermès International H1 2026 Financial Highlights
Shares of Hermès International fell more than 10% on Wednesday, reaching €1,502 intraday – the lowest level since January 2023 and the steepest one‑day decline since October 2010. The decline was triggered by a miss on first‑half diluted earnings per share (EPS) of €21.32, which fell short of the analyst consensus of €21.56.
Operating performance showed a recurring operating income of €3.35 billion, surpassing the €3.29 billion consensus estimate, and a recurring operating margin of 41.0% of sales, edging above the 40.6% consensus but below the 41.4% recorded a year earlier.
Revenue for the first half stood at €8.16 billion, exactly matching the analyst average. Currency movements trimmed reported revenue by more than €360 million, yet constant‑exchange‑rate revenue growth accelerated to 6.7% in the second quarter from 5.6% in the first quarter.
Geographic performance: Asia‑Pacific excluding Japan posted a 2.5% constant‑exchange‑rate sales increase, missing the 4.0% consensus; Japan grew 12.3% versus a 10.3% forecast; the Americas rose 13.7% against a 13.3% estimate; and Europe including France expanded 7.4% compared with a 6.6% consensus.
By product line, second‑quarter leather‑goods sales rose 10.2% at constant exchange rates, slightly below the 11% estimate; silk and textiles grew 12.2%; perfume and beauty declined 9.5%.
Adjusted free cash flow increased 18% to €2.2 billion, and the restated net cash position rose €2.2 billion year‑on‑year to €12.9 billion. The group did not report any tariff impact.
Hermès reaffirmed an ambitious goal for revenue growth at constant exchange rates but did not disclose a specific numerical target.
Analyst commentary: Jefferies maintained a “buy” rating with a €2,000 price target, noting that the investment debate would likely remain centred on the group’s relatively modest growth by its historical standards and questioning whether the lack of growth in China reflects a deliberate restriction of product supply in that market.