finance
Kering and Hermès Post First-Quarter Revenue Below Estimates; Middle East Sales Dip Amid US-Iran Conflict
Kering reported first-quarter revenue below analyst estimates, with Gucci's revenue plunging 8%. Hermès first-quarter sales rose 5.6% at constant exchange rates, missing Bloomberg Consensus estimates of 7.44%. The Goldman Sachs EU Luxury Goods Index declined more than 4% following the reports.
Apr 15, 7:45 AM·1m read1 source
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# Kering and Hermès Earnings Miss Estimates Kering reported first-quarter revenue below analyst estimates on April 15, 2026. Gucci's first-quarter revenue plunged 8%. The US-Iran conflict started late in the first quarter.
Kering's sales in the Middle East dropped 11% in the first quarter. The Middle East accounts for about 5% of Kering's revenue. The US-Iran conflict shaved roughly 1 percentage point off Kering's overall first-quarter sales.
Decline After Reports Shares of Kering in Paris traded down as much as 10% following the earnings report.
Hermès reported first-quarter sales below analyst estimates. 6% at constant exchange rates. Hermès shares in Paris declined by 10% following the earnings report.
Sales in France declined 2.8% in the first quarter. A Goldman Sachs analyst stated that most luxury companies reported a -100 to -150 basis points headwind in the first quarter from Middle East events.
The Goldman Sachs EU Luxury Goods Index (GSXELUXG) declined more than 4% following the Kering and Hermès earnings reports.
Views on Luxury Sector A Goldman Sachs analyst stated on the morning of the article's publication: "Money was waiting on the sidelines to buy luxury for a de-escalation play – that feels premature with three misses in three days."
The Goldman Sachs EU Luxury Goods Index (GSXELUXG) declined 4% on the morning of the article's publication. Consensus expects 9% growth for Hermès in FY26.
The article was published on April 15, 2026, at 07:45 UTC.
