Leather goods remained a strong point, while ready-to-wear was down as the group awaits Grace Wales Bonner's first collection.

PARIS – Hermès International reported third-quarter revenue growth of 4.3 percent at constant currency to 4.1 billion euros, amid strong demand for leather goods and continued momentum in the Americas and Europe, which offset stagnation in China.

That fell short of analysts’ expectations, which had consensus on growth in the third quarter hitting 5.2 percent.

The French luxury group’s performance marked a slowdown from the 9.6 percent growth recorded in the same period last year, underscoring the increasingly challenging environment facing luxury brands as demand across Asia remains subdued.

“Hermès continues to suffer a difficult trading environment overall,” said Bernstein analyst Luca Solca.

“Despite a complex environment, Hermès continues its profitable growth and maintains its course. Convinced of the strength and relevance of our artisanal model, we see our vision as firmly rooted in the long term, and we look to the future with confidence,” chief executive officer Axel Dumas said in a statement.

He added that the company is looking forward – perhaps hoping for a boost in sales – to the first men’s ready-to-wear collection by Grace Wales Bonner, as well as the introduction of haute couture by Nadège Vanhée, both due in January 2027.

2 percent overall at constant currency. 5 percent.

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