TCF POST Analysis
Paris: Hermès International reported a resilient financial and operational performance for the first half of (H1) 2026, reaching consolidated revenues of €8.2 billion. This represents an increase of 6% at constant exchange rates (and 2% at current exchange rates) compared to the same period in 2025. The growth momentum slightly accelerated in the second quarter, reaching 7% growth at constant exchange rates (generating €4.1 billion). Recurring operating profitability remained remarkably high at 41.0% of sales.
Sector Analysis
- Ready-to-Wear and Accessories (Apparel & Footwear)
- H1 2026 Revenue: €2,198 million (compared to €2,255 million in H1 2025; representing a +2.0% increase at constant exchange rates, and -2.5% published due to foreign exchange impacts).
- Second Quarter Acceleration: The sector showed a notable improvement in Q2, posting €1,123 million in sales (+3.6% growth at constant exchange rates).
- Comparative Standing: While Leather Goods and Saddlery remains the primary revenue driver (€3,761 million, up 9.8%), Ready-to-Wear and Accessories serves as the group’s second-largest revenue pillar, demonstrating solid stability and steady demand recovery heading into the second half of the year.
- General Sector Comparison (H1 2026 at Constant Exchange Rates)
- Leather Goods and Saddlery: +9.8% (€3,761 million)
- Ready-to-Wear and Accessories: +2.0% (€2,198 million)
- Silk and Textiles: +9.7% (€469 million)
- Watches: +0.2% (€269 million)
- Perfume and Beauty: -4.5% (€233 million)
- Other Hermès Sectors (Jewellery & Home): +5.4% (€1,065 million)
Apparel & Footwear Fashion Trends and Forecasts
- Critical Collections & Launches:
- The women’s fall-winter 2026 ready-to-wear collection was successfully unveiled in early March at the Garde Républicaine in Paris.
- The momentum was amplified globally by the successful unveiling of the second chapter of the women’s fall-winter 2026 collection in Los Angeles in June, generating tremendous public and commercial enthusiasm.
- Footwear Integration: Footwear (housed within the Ready-to-Wear and Accessories division alongside belts, costume jewellery, gloves, and hats) benefited from cross-category retail traffic and strong client loyalty.
- Outlook & Strategic Forecast: Hermès confirms an ambitious mid-term goal for revenue growth at constant exchange rates, relying heavily on the creativity of its ready-to-wear collections and the sustained desirability of its footwear and apparel offerings.
Production and Sourcing
Hermès continues to anchor its production and sourcing heavily in France, reinforcing domestic employment and specialized training. The group expanded its global workforce by more than 600 employees over the first six months of 2026 (including 300 in France), bringing total permanent and fixed-term headcounts to 27,107 employees (16,656 based in France). Demonstrating operational excellence, Hermès was honored with the Transparency Awards “Vigilance Plan” award, acknowledging the clarity of its supply chain communications and the robust quality of its non-financial disclosures. Hermès completed the first two steps of the Science Based Targets for Nature (SBTN) initiative, implementing a scientific materiality assessment to embed biodiversity conservation directly into its sourcing and production strategy.