Overview
- Hermès reported 4.3% revenue growth for the third quarter, to about €4.1 billion, on Oct. 22 and missed analyst consensus of roughly 5.2%.
- Regional splits show Europe, Japan and the Americas pacing growth while China and the rest of Asia were flat or declining, weakening group results across the sector.
- Product categories diverged sharply with Hermès leather goods up about 10.8% while watches fell roughly 6% and ready-to-wear softened, leaving some houses more exposed than others.
- Kering posted flat group revenues and said Gucci sales dropped about 6% in Q3, with Gucci own-store revenues down near 9% because of low store footfall in China.
- Companies are holding full-year guidance for now but are cutting stores, changing creative and management ranks and highlighting upcoming collections as the market watches Q4 holiday demand for signs of recovery.