Hermès International H1 2026 Results
Hermès International reported first‑half 2026 results that saw its shares decline by more than 7 % after the company posted diluted earnings per share (EPS) of €21.32, missing the consensus forecast of €21.56. Recurring operating income reached €3.35 billion, surpassing the analyst consensus of €3.29 billion, while total revenue was €8.16 billion, matching the €8.16 billion average estimate. Currency movements reduced reported revenue by over €360 million, although constant‑exchange‑rate revenue growth accelerated to 6.7 % in the second quarter from 5.6 % in the first quarter.
Regionally, second‑quarter sales at constant exchange rates grew 12.3 % in Japan versus a 10.3 % forecast, 13.7 % in the Americas versus 13.3 % consensus, and 7.4 % in Europe including France versus a 6.6 % estimate. Asia‑Pacific excluding Japan was the weakest area, with sales up only 2.5 % against a 4.0 % consensus.
By product line, leather‑goods sales increased 10.2 % at constant exchange rates, slightly below the 11 % estimate; silk and textiles rose 12.2 %; and perfume and beauty sales fell 9.5 %.
The recurring operating margin stood at 41.0 % of sales, beating the 40.6 % consensus but below the 41.4 % recorded a year earlier. Adjusted free cash flow grew 18 % to €2.2 billion, and the restated net cash position rose by €2.2 billion year‑on‑year to €12.9 billion. The group reaffirmed an ambitious goal for revenue growth at constant exchange rates but did not disclose a specific target.
Jefferies maintained a “buy” rating with a €2,000 price target, noting that the investment discussion 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.