Hermès shares plummet - fewer
Photo: Kirsty Wigglesworth/AP/TT

Hermès shares plummet - fewer customers from the Middle East

The French luxury brand Hermès sold fewer bags than expected in the first quarter. The conflict in Iran is weighing on sales. Hermès shares are plummeting on the Paris Stock Exchange.

Advertisement

The luxury brand, known for its Birkin bags and silk scarves, increased sales by 5.6 percent year-on-year. This is lower than analysts' average forecast of 7.4 percent.

The business segment that includes the Middle East performed particularly poorly - sales decreased by 5.9 percent during the quarter compared to the same period last year.

Revenues in France decreased by 2.8 percent due to lower tourist spending.

The company's CFO said that stores in France, Switzerland and the UK had fewer customers from the Middle East during the period.

At 9:45 a.m., the stock fell 12 percent in Paris.

In this story
AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
Was this useful?

What do you think?

Keep readingmore from Business

All