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French luxury powerhouse Hermès continues to see rising sales, indicating steady demand for high-end goods even as consumers tighten spending elsewhere.

In the third quarter, Hermès posted revenue of €3.88 billion (around $4.5 billion), up 9.6% from the same period last year at constant exchange rates. This marks an acceleration from the 9% growth recorded in the second quarter. Analysts surveyed by Visible Alpha had predicted quarterly revenue of €3.90 billion.

The results follow a recent report from Louis Vuitton (part of LVMH), which also showed improving sales trends, raising hopes for a rebound in the luxury sector after a prolonged slowdown in demand for premium goods and accessories.

Hermès reaffirmed its mid-term revenue growth target at constant exchange rates, while noting that the current global economic environment remains characterized by geopolitical and currency uncertainties.

“Hermès is the third luxury company this reporting season to show consistent year-on-year revenue improvement, which could indicate a turning point,” said Citi analyst Thomas Chauvet.

He added that the luxury sector may be entering a more favorable cycle for demand and profitability, supported by stabilized macroeconomic conditions in key regions, rising wealth among affluent clients, increased foot traffic in stores, new marketing initiatives, product category expansion, and the opening of new boutiques.

Looking ahead to 2026, Hermès plans to continue expanding its store network in key regions, increasing retail spaces by more than 5,000 square feet. In Geneva, the current store will be enlarged, while a new boutique is set to open on London’s Bond Street in the second quarter of 2026. The company also has projects planned in China and significant investments in its U.S. store network, including the recent opening of a flagship in Nashville on October 13.

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