{"text":[[{"start":8.88,"text":"Hermès blamed a “challenging” economic backdrop in key markets including China and the Middle East as the high-end luxury brand reported a fall in sales of ready-to-wear fashion and accessories."}],[{"start":20.76,"text":"The French group said total sales for the three months to the end of September rose 4.3 per cent year on year at constant exchange rates to €4.1bn, slightly below analysts’ expectations of 5.2 per cent."}],[{"start":35.48,"text":"Sales of its highly sought-after handbags and leather goods, its biggest division, remained strong, up 10.8 per cent in the quarter. However, revenues from fashion and accessories, its second-biggest division, fell 2 per cent in the same period."}],[{"start":49.56,"text":"“Despite a complex environment, Hermès continues its profitable growth and maintains its course,” executive chair Axel Dumas said in a statement as the Paris-listed group reaffirmed its medium-term outlook “for revenue growth at constant exchange rates”."}],[{"start":64.04,"text":"Trading in October is so far following the same trends, including in China, chief financial officer Eric du Halgouët said on a call with analysts."}],[{"start":73.72,"text":"He said weak third-quarter sales of ready-to-wear fashion did “not reflect the overall trend”, which was positive outside China in the quarter. The first collections from new menswear designer Grace Wales Bonner and the launch of haute couture in 2027 were expected to have a “halo effect” on the division, he added."}],[{"start":93.48,"text":"Hermès has outperformed the luxury industry through a multiyear slowdown in demand for high-end goods thanks to its loyal, wealthy customer base. However, its resilience is being tested by an unstable geopolitical environment. Investors have also started to question its previously sky-high valuation and the widening gap between demand for its leather goods and other product lines."}],[{"start":115.32,"text":"“Leather has reaccelerated . . . but the lag in other categories has also worsened to unprecedented levels,” wrote James Grzinic, analyst at Jefferies."}],[{"start":124.68,"text":"Hermès shares fell nearly 6 per cent at open, taking declines for the year to 39 per cent for a market value of €135bn. Other luxury names are also down this year. LVMH shares have fallen 39 per cent in 2026 and Gucci owner Kering is down 29 per cent. Richemont, which is outperforming the market thanks to demand for Cartier and Van Cleef & Arpels jewellery, is up just 1.5 per cent."}],[{"start":154.14,"text":"Industry leader LVMH reported 1 per cent group sales growth in the third quarter earlier this month, held back by weak demand for its core fashion and leather goods offering, setting up what is expected to be a tough reporting period for the luxury sector."}],[{"start":168.12,"text":"Hermès’ third-quarter sales in Europe outside France accelerated to 9.5 per cent at constant rates, boosted by better than expected performance from its recently opened London flagship on Bond Street. The Americas remained strong, up 8.8 per cent, but Asia-Pacific outside Japan was flat due to “unfavourable” conditions in China. The Middle East was down 4.5 per cent due to the ongoing conflict between the US and Iran."}],[{"start":195.96,"text":"Executives said fashion, watches and shoes were the categories most affected in China as footfall in stores declined. However, du Halgouët said the group was confident in China’s potential “in the medium and long term”."}],[{"start":209.44,"text":"Weakness in other divisions is also widening the gap between the performance of its leather goods business and other parts of the company. Aside from the dip in fashion sales, its smaller watches division fell 6 per cent in the third quarter and silk and textiles grew at a slower 1.4 per cent."}],[{"start":232.44,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1792664063_9091.mp3"}