Story Highlight
– Hermès first-half 2026 revenues reached €8.2 billion.
– Watch sales totaled €269 million, nearly flat year-over-year.
– First quarter watch revenues decreased by 3.7%.
– Second quarter saw watch sales grow by 4.4%.
– Expansion of Swiss facility signals commitment to watch production.
Full Story
Hermès has announced its revenues for the first half of 2026, reporting €8.2 billion, which represents a 6% increase when adjusted for constant exchange rates. The performance of its watch division revealed a mixed outcome over the first six months, ultimately resulting in positive growth.
For the first half of the year, watch sales amounted to €269 million, showing little change from €281 million in the same period of 2025, resulting in a marginal rise of 0.2% when exchange rates are held constant. The initial quarter of the year was marked by a decline, with watch revenues decreasing by 3.7% as the sector faced significant market challenges.
In contrast, the second quarter witnessed a turnaround with watch sales increasing by 4.4%. This growth aligns with the overall improvement that Hermès experienced across a majority of its product lines during the same period.
The revival in watch revenues has been credited to the strength of Hermès’ renowned collections, particularly highlighting the Cape Cod line, as well as the broadening of its product range.
Significantly, the company’s recent participation in the Watches & Wonders 2026 event spotlighted the launch of the H08 in titanium, featuring the innovative H1978 calibre. This development marks an important advancement for Hermès, which has made notable progress in establishing its expertise in in-house movements.
Looking forward, Hermès has confirmed plans to expand its watchmaking facility located in Le Noirmont, Switzerland, with the expansion set to be completed by 2028. This long-term investment signifies a commitment to enhancing production capabilities rather than merely maintaining current output levels.
When considered against the overall performance of the group, where leather goods have seen growth of nearly 10% and silk and textiles have also risen by a similar margin, the watches segment remains comparatively modest, contributing €269 million to the total €8.2 billion. Nevertheless, the recovery noted in the second quarter and the significant investment in facility upgrades suggest that Hermès is prioritising its watch business as a vital part of its future strategy.
