1) Financial Performance Overview
- Hermes reported Q2 2026 revenue of EUR 8.2 billion, a 6% increase at constant exchange rates and 2% at current rates.
- Q2 sales reached EUR 4.1 billion, up 7% at constant exchange rates, indicating a stronger performance compared to Q1.
- Operating margin remained robust at 41%, with available cash flow increasing by 18% YoY.
- Gross margin improved to 71.1%, up 0.4 points from H1 2025, attributed to effective stock management and high sell-through rates.

2) Geographical and Segment Growth
- All regions showed growth, except for the Middle East, which experienced a slight decline.
- Europe (excluding France) grew by 9%, while France saw a 2% increase, reflecting a disparity in tourist flows and local spending.
- The Americas led growth at 15%, followed by Japan at 11%.
- Segment performance: Leather Goods and Accessories grew by 10%, while Ready-to-Wear and Silk & Textiles saw increases of 2% and 10%, respectively. Perfume and Beauty declined by 4%.

3) Strategic Initiatives and Investments
- Hermes is focused on expanding production capacity, with plans to open new leather workshops and enhance its distribution network.
- A 25th leather workshop was inaugurated, with additional workshops planned through 2030.
- The company is investing in IT and logistics improvements, with total operating investments expected to reach EUR 1 billion for the year.
- The retail network is expanding, with new store openings in major cities including Chicago, Brooklyn, and Chengdu.

4) Challenges and Market Dynamics
- The Middle East's performance was impacted by geopolitical instability, contributing to a 1.5 percentage point reduction in growth.
- In China, demand remains stable but lacks previous momentum, with local consumer behavior influenced by the real estate market.
- The company faces challenges in the perfume segment, which has not performed as strongly as other categories.
- Currency fluctuations negatively impacted growth, with a EUR 360 million adverse effect on revenue due to exchange rate changes.

5) Outlook and Guidance
- Hermes maintains its ambitious revenue growth targets at constant exchange rates for the medium term.
- The company anticipates continued investment across all divisions and regions, with a focus on enhancing product quality and craftsmanship.
- There is cautious optimism regarding the second half of 2026, although external factors such as geopolitical tensions and economic conditions may influence performance.

Bottom line: Hermes demonstrated solid financial performance in H1 2026, with strong revenue growth and high operating margins, supported by strategic investments and a diversified product portfolio. However, challenges in specific regions and segments, particularly in the Middle East and perfume, warrant close monitoring. The company's commitment to quality and craftsmanship positions it well for future growth, despite external uncertainties.