Azernews.Az

by Alimat Aliyeva

Shares of Hermès International S.C.A. fell sharply on Wednesday, dropping by about 13% after the French luxury group’s first-quarter results came in below market expectations, AzerNEWS reports, citing foreign media.

The company reported revenue of €4.07 billion, which was slightly under analysts’ forecasts and also 1.4% lower compared to the same period last year. The decline was mainly driven by weaker performance in the Middle East, where ongoing geopolitical tensions contributed to a 13.4% year-on-year drop in sales.

Following the earnings release, Hermès stock declined by 12.93% to €1,551.50 at 9:25 a.m. CET, after briefly falling as much as 13.6% earlier in the trading session.

Despite the setback, analysts note that Hermès remains one of the most resilient players in the luxury sector, largely due to its ultra-premium positioning and limited production strategy, which helps maintain strong demand even during periods of economic uncertainty. Interestingly, unlike many luxury brands that rely heavily on discounts or mass expansion, Hermès deliberately keeps supply tight — meaning some of its most iconic products, like Birkin bags, often have waiting lists that can last months or even years. This exclusivity model continues to support long-term brand value, even when short-term financial results fluctuate.