Luxury Q3: Hermès Up 5.5 Percent, Kering’s Gucci Down 4 Percent as LVMH, Prada and Moncler Slow
Hermès lifted third-quarter sales 5.5 percent as reported, to 4,096 million euros. Kering’s revenue was stable as reported at 3,345 million euros, while Gucci shrank 4 percent. Both groups reported on 22 October 2026, the same day as Prada. Moncler reported on 21 October and LVMH on 12 October. On our reading, the five releases describe a divergent third quarter: growth sat in a few houses and product lines, while others slowed or fell.
Some regional themes recur. In four of the five releases, on our count, North America or the Americas is named as a source of strength; Moncler is the exception, where Asia led and the Americas slowed to 2 percent growth in the quarter. On China the wording is company specific: Kering said lower traffic weighed on Gucci in Mainland China, LVMH pointed to a less buoyant environment in China and a slowdown in demand there for fashion and leather goods, and Hermès said Greater China was stable over nine months in a more difficult context.
Third quarter 2026 at a glance
| Company | Q3 revenue (€m) | Underlying change | Basis |
|---|---|---|---|
| Hermès | 4,096 | +4.3% | Constant currency |
| LVMH | 18,504 | +1% | Organic |
| Prada Group | Not given | +1% | Organic, excluding Versace |
| Moncler Group | 605.5 | Flat | Constant currency |
| Kering | 3,345 | -1% | Comparable |
Company releases of 12, 21 and 22 October 2026. The groups use different underlying measures, shown in the last column, so the table compares direction, not size. Prada gave growth rates for the quarter without a euro figure.
Hermès: leather goods carry the quarter
At constant exchange rates Hermès grew 4.3 percent in the quarter, slower than the 6.1 percent of the first half. Leather Goods and Saddlery sales rose to 1,912 million euros from 1,700 million, up 10.8 percent at constant rates. That is a rise of 212 million euros, against 215 million for the whole group, so leather goods supplied 98.6 percent of the quarter’s increase in reported euros, on our calculation.
The weight of the business keeps moving towards leather goods. Leather goods were 46.7 percent of third-quarter sales on our calculation, and 46.3 percent of nine-month sales against 44.3 percent a year earlier. Ready-to-wear and accessories slipped 2.0 percent at constant rates, and watches 6.0 percent. Perfume and beauty grew 7.5 percent in the quarter, though the line was still 0.7 percent lower over nine months.
By region, the Americas grew 8.8 percent at constant rates to 791 million euros, 19.3 percent of the quarter on our calculation. Japan rose 9.6 percent at constant rates and 3.4 percent in euros, a currency gap of 6.2 points on our calculation. Sales in Asia excluding Japan were flat at constant rates. The Other area, mainly the Middle East, 3.9 percent of nine-month sales on our calculation, was 4.5 percent lower in the quarter at constant rates; over nine months, the company said, the area continued to show solid resilience in a complex geopolitical context.
Executive Chairman Axel Dumas said: “Despite a complex environment, Hermès continues its profitable growth and maintains its course.” The group’s first-half recurring operating margin was 41.0 percent, against 41.4 percent a year earlier. Over nine months it redeemed 94,846 shares for 160 million euros.
Hermès third-quarter sales by line
| Line | Q3 2026 (€m) | Change at constant rates | Share of Q3 sales |
|---|---|---|---|
| Leather Goods and Saddlery | 1,912 | +10.8% | 46.7% |
| Ready-to-wear and Accessories | 1,141 | -2.0% | 27.9% |
| Silk and Textiles | 214 | +1.4% | 5.2% |
| Perfume and Beauty | 128 | +7.5% | 3.1% |
| Watches | 125 | -6.0% | 3.1% |
Hermès, quarterly information to 30 September 2026. Shares are our calculation against third-quarter sales of 4,096 million euros. Other Hermès sectors (486 million euros) and other products (92 million euros) are not shown.
Kering: Gucci falls, jewelry and eyewear grow
Kering’s revenue was stable as reported and 1 percent lower on a comparable basis, with currency adding 1 point. Chief Executive Luca de Meo said: “Third-quarter revenue reflects the phasing we anticipated, in a softer macroeconomic environment.” The quarter reversed the second quarter’s return to growth, when revenue of 3,652 million euros rose 2 percent on a comparable basis.
Gucci is the swing factor, on our reading. Its revenue fell to 1,291 million euros, 38.6 percent of the group’s quarter on our calculation. Its comparable decline widened to 6 percent, from 2 percent in the second quarter. Sales in Gucci’s own stores fell 9 percent on a comparable basis. Kering named traffic as the main constraint, while conversion, average price and average ticket stayed supportive across most of its houses. At Gucci, lower traffic weighed on Asia Pacific, particularly Mainland China, and on Japan. Gucci’s wholesale sales reached 120 million euros, 9 percent of its revenue, up 45 percent on a comparable basis against a low comparison base.
Outside Gucci the picture is firmer. Retail sales at the other fashion houses grew 2 percent, driven by Saint Laurent, Bottega Veneta and Brioni. Kering Jewelry grew 11 percent on a comparable basis to 239 million euros and Kering Eyewear 4 percent to 373 million euros.
Nine-month revenue was 10,565 million euros, down 2 percent as reported and stable on a comparable basis. The group closed 128 stores and opened 23 in nine months, for 105 net closures. That beat its full-year goal of 100. It now plans at least 125, which leaves at least 20 for the fourth quarter on our calculation. Kering confirmed its objective of improving its recurring operating margin in 2026; the first-half margin was 12.8 percent.
Kering third-quarter revenue by division
| Division | Q3 2026 (€m) | Reported change | Comparable change |
|---|---|---|---|
| Fashion & Leather Goods | 2,743 | -1% | -3% |
| of which Gucci | 1,291 | -4% | -6% |
| Kering Eyewear | 373 | +6% | +4% |
| Kering Jewelry | 239 | +12% | +11% |
| Corporate and Other | 27 | -5% | -5% |
Kering, revenue for the third quarter of 2026. Gucci is part of Fashion & Leather Goods. The divisions shown do not add up to the group total of 3,345 million euros.
Prada and Moncler: underlying growth slows
Prada’s nine-month revenue rose to 4,541 million euros from 4,070 million: 12 percent higher as reported, 15 percent at constant currency and 4 percent on an organic basis, which excludes Versace and currency effects. Versace contributed 441 million euros, or 9.7 percent of the total on our calculation. In the third quarter, revenue grew 11 percent at constant currency and 1 percent organically; no reported change for the quarter was given. Excluding Versace, revenue was 4,100 million euros against 4,070 million a year earlier, 0.7 percent higher in euros on our calculation; on our reading, currency took most of the organic gain.
Retail sales of the Prada brand grew 2 percent over nine months and 1 percent in the quarter. Miu Miu retail sales grew 1 percent over nine months, after 41 percent growth a year earlier, and fell 3 percent in the quarter. In the quarter the Americas were the best region; the Middle East improved on the previous quarter but still weighed on performance, particularly at Miu Miu. Chief Executive Andrea Guerra called the industry backdrop particularly challenging. Royalties rose to 178 million euros from 101 million over nine months.
Moncler Group’s third-quarter revenue of 605.5 million euros was flat at constant exchange rates. The Moncler brand slipped 1 percent at constant exchange rates, to 499.6 million euros, as sales through its own stores and online fell 2 percent in a challenging environment with subdued tourist flows. Its sales in Europe, the Middle East and Africa fell 8 percent in the quarter on softer local demand and fewer tourists, particularly from Asia. Stone Island grew 5 percent at constant exchange rates, to 105.9 million euros. Over nine months revenue rose 6 percent at constant rates to 1,895.4 million euros. Asia provided 51.8 percent of Moncler brand sales over nine months, up from 48.5 percent a year earlier on our calculation. The brand ran 305 own stores at the end of September, 10 more than at the end of 2025 on our count.
LVMH: the benchmark from 12 October
LVMH’s third-quarter revenue rose to 18,504 million euros from 18,280 million, 1.2 percent higher as reported on our calculation. Organic growth was 1 percent. Changes in scope took off 2 points and currency added 2. Fashion and leather goods fell 5 percent organically to 8,245 million euros, and its share of group revenue dropped to 44.6 percent from 46.5 percent on our calculation. Watches and jewelry grew 6 percent organically. Selective retailing grew 8 percent organically but 2.0 percent as reported, on our calculation; the group said most of DFS’s businesses were sold.
LVMH organic growth by quarter, 2026
| Business group | Q1 | Q2 | Q3 |
|---|---|---|---|
| Selective Retailing | +4% | +6% | +8% |
| Watches & Jewelry | +7% | +11% | +6% |
| Fashion & Leather Goods | -2% | +1% | -5% |
| Group | +1% | +3% | +1% |
LVMH, appendix to the 12 October 2026 release. Organic growth is on a constant scope and currency basis against the same quarter of 2025.
Why it matters: The third quarter split Europe’s luxury groups by product line. Hermès grew almost entirely through leather goods, on our calculation. Kering’s jewelry and eyewear outgrew its fashion core. At LVMH, selective retailing, watches and jewelry, and wines and spirits grew while fashion and leather goods fell. Where a group depends on one large house, as Kering does on Gucci, slower store traffic shows up directly in the group figure, on our reading.
Outlook: Kering has kept its 2026 margin objective and Hermès its ambitious medium-term goal for growth at constant exchange rates, while LVMH said it remains confident of reinforcing its leadership in 2026. Burberry reports interim results on 12 November 2026, and Hermès publishes its full-year 2026 results on 12 February 2027.
Sources: Hermès, Kering, Prada Group, Moncler Group, LVMH, Burberry, The Edge.
