Hermès Shares Hit Over Three-Year Low on July 29, 2026 as China Growth Slows; Q2 Leather Sales Up 10.2%
Hermès shares fell to their lowest level in over three years on July 29, 2026, as sluggish growth in China weighed on investor sentiment. The company reported second-quarter leather goods sales rose 10.2% at constant exchange rates, showing resilience versus peers. Shares dropped more than 11% in Paris trading to levels not seen since January 2023. Executive Chairman Axel Dumas noted the Chinese market, a key growth driver, has not recovered and growth is slower than previous years. Asia including China contributed 43% of Hermès' first-half revenue, highlighting its greater exposure to the region compared with LVMH.
Hermès shares fell to their lowest level in more than three years, as slow growth in its China business drew market attention. The company reported second-quarter leather goods sales rose 10.2% at constant exchange rates, demonstrating resilience relative to luxury industry competitors. Hermès shares at one point dropped more than 11% in Paris trading, hitting their lowest level since January 2023.
The luxury sector is facing multiple headwinds, including reduced spending by Chinese consumers, greater caution due to inflationary pressures, and conflict in the Middle East affecting demand at shopping centers in Dubai and the number of tourists traveling to Europe. Executive Chairman Axel Dumas said on a conference call that the Chinese market, which had been a major engine for the luxury industry, has not yet improved. The market is stabilizing but has not seen a fundamental rebound, and the company's China business is still growing, but at a slower pace than in previous years.
Hermès is more dependent on the Chinese market than many of its competitors. In the first half, Asia including China contributed about 43% of the company's revenue, while Asia excluding Japan contributed only 29% of LVMH's revenue in the same period.