Shares slide at Hermes as Iran war curtails demand

(Sharecast News) - Shares in French luxury house Hermes International fell sharply on Wednesday, as war in the Middle East curtailed tourism and weighed on spending. Updating on first-quarter trading, the group - best known for its leather goods, including the iconic Birkin bag - said consolidated revenues fell 1% to €4.1bn. On a constant currency basis, revenues rose 5.7%, though that was still below the 7.1% analysts had been expecting.

Excluding France, Europe, Japan and the Americas showed "strong" sales growth, Hermes noted.

But revenues in Asia as a whole, its biggest region, were down 4.5%, while in the Middle East they tumbled 13.4%. The latter region was "significantly impacted by recent geopolitical developments" from March onwards, Hermes said, notably in the United Arab Emirates but also Kuwait, Qatar and Bahrain. Sales in its home market of France were also lower, falling 2.8%, as international travel was curtailed.

As at 1130 BST, the Paris-listed stock had shed 9%.

The luxury sector has been hit hard by the outbreak of hostilities across the Gulf. Shares in peer Kering also fell sharply on Wednesday, after it reported a hit from the war alongside disappointing sales at its flagship Gucci brand

However, Axel Dumas, Hermes' executive chair, said: "In a tense geopolitical environment, Hermes maintains its course, true to its long-term strategy.

"Hermes is continuing its profitable growth in 2026 with confidence and conviction."