Investing.com-- Hermes said on Thursday that its third-quarter revenue was buoyed by demand for its leather goods in the Americas, Europe and Japan, which helped offset weakness in the Middle East, watches and ready-to-wear.
Still, revenue in the three months to September 30 rose 4.3% YoY in currency-adjusted terms, below the analyst estimate of 5.2%.
Shares in the company fell as much as 8%, hitting a fresh four-month low after what RBC analysts described as "a mixed bag" report.
Leather goods and saddlery, the group's largest division, grew 12.4% in the quarter to 1.912 billion euros. Hermes said new models and iconic pieces drew strong demand, while it kept expanding capacity.
Sales in the Americas rose 10.7%. Hermes cited growth across all countries and product lines, and new stores in Chicago, New York and Rio de Janeiro. Europe excluding France gained 8.6%, helped by Southern Europe and a new London flagship that opened in June. Japan rose 3.4%, in a market where Hermes said loyal local customers drove momentum.
Asia-Pacific excluding Japan grew 3.8%. Hermes said Korea performed solidly, while Greater China was stable over nine months in a "more difficult context".
Middle East sales fell 2.8% in what the company called a complex geopolitical environment.
Executive Chairman Axel Dumas said that "despite a complex environment, Hermes continues its profitable growth".
Hermes confirmed its medium-term goal for revenue growth despite economic, geopolitical and monetary uncertainty, but gave no figure.
The company is due to publish full-year results on Feb. 12, 2027.
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