Hermes Third-quarter Growth Slows as Ready-to-wear Turns Negative

Birkin bags are displayed at Lilac Blue, a Knightsbridge private Hermes resale boutique, in London, Britain, October 19, 2026. REUTERS/Suzanne Plunkett
Birkin bags are displayed at Lilac Blue, a Knightsbridge private Hermes resale boutique, in London, Britain, October 19, 2026. REUTERS/Suzanne Plunkett
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Hermes Third-quarter Growth Slows as Ready-to-wear Turns Negative

Birkin bags are displayed at Lilac Blue, a Knightsbridge private Hermes resale boutique, in London, Britain, October 19, 2026. REUTERS/Suzanne Plunkett
Birkin bags are displayed at Lilac Blue, a Knightsbridge private Hermes resale boutique, in London, Britain, October 19, 2026. REUTERS/Suzanne Plunkett

Birkin bag maker Hermes on Thursday posted slightly weaker third-quarter revenues than analysts expected as ready-to-wear sales turned negative for the first time in years amid what Hermes called a "challenging" economic context.

Hermes's miss, which follows LVMH's downbeat quarterly sales update earlier this month, looked likely to further unsettle investors about the company's resilience in the face of a wider luxury sector slowdown.

Hermes finance chief Eric du Halgouet told journalists in a call that the Chinese market, Hermes' single-largest, was "very difficult", but added he remained confident ⁠on long-term prospects and would ⁠keep investing in the country.

Quarterly sales rose 4.3% year-on-year in currency-adjusted terms to €4.10 billion ($4.61 billion), slightly below an expected growth rate of 5.2% from analysts polled by Visible Alpha.

It was the weakest quarterly sales growth rate since early 2020, when Hermes had to shut down boutiques ⁠globally due to the pandemic.

Quarterly sales of Hermes's leather goods division, which makes its famous Birkin and Kelly handbags, rose 10.8%, while sales at the company's ready-to-wear and accessories division, accounting for over a quarter of quarterly sales, declined by 2% from last year, Reuters reported.

Du Halgouet said the contraction in ready-to-wear was only due to weak Chinese demand while the division kept growing in all other regions.

Hermes shares are down 36% since the start of the year.

Analysts have flagged ⁠a ⁠growing sense among investors that Hermes's historically high stock-market valuation, resulting from a decade of strong growth, may move closer to industry averages as the pace of its expansion is slowing.

The brand's famous Birkin handbags have become more available on the second-hand market and so have lost some of their appeal, several resellers told Reuters, suggesting Hermes's scarcity-driven business model could be coming under pressure.

The Birkin's desirability remains "intact," du Halgouet said, adding the company would stick to its rhythm of increasing overall production volumes by around 6% in the coming years.



Prada’s New Milan Exhibition Turns a Century of Fashion into Fresh Discoveries

Visitors enjoy the Prada fashion brand permanent exhibition called "Pradasphere", offering a rare deep dive into the history, craftsmanship, and evolution of the iconic Italian fashion house, located inside the historic Galleria Vittorio Emanuele, in Milan, Italy, Friday, Nov. 6, 2026. (AP)
Visitors enjoy the Prada fashion brand permanent exhibition called "Pradasphere", offering a rare deep dive into the history, craftsmanship, and evolution of the iconic Italian fashion house, located inside the historic Galleria Vittorio Emanuele, in Milan, Italy, Friday, Nov. 6, 2026. (AP)
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Prada’s New Milan Exhibition Turns a Century of Fashion into Fresh Discoveries

Visitors enjoy the Prada fashion brand permanent exhibition called "Pradasphere", offering a rare deep dive into the history, craftsmanship, and evolution of the iconic Italian fashion house, located inside the historic Galleria Vittorio Emanuele, in Milan, Italy, Friday, Nov. 6, 2026. (AP)
Visitors enjoy the Prada fashion brand permanent exhibition called "Pradasphere", offering a rare deep dive into the history, craftsmanship, and evolution of the iconic Italian fashion house, located inside the historic Galleria Vittorio Emanuele, in Milan, Italy, Friday, Nov. 6, 2026. (AP)

Iconic A-line skirts twirl overhead, silver-covered handbags gleam in a secret underground passage and a spacesuit prototype brings more than a century of fashion history into the future at Prada’s new permanent exhibition in Milan, called “Pradasphere.”

The highly visual journey through the Italian luxury brand’s evolution is connecting Prada aficionados with the fashion house’s heritage in ways that go beyond nostalgia, and already is promising a commercial payoff.

“The exhibition is a multiplier,” said Lorenzo Bertelli, Prada Group's chief group marketing officer.

Prada projects that the Pradasphere exhibition anchoring the brand's expansion in the Galleria Vittorio Emanuele shopping arcade will add 100 million euros ($111 million) in annual revenues, and Bertelli said that target could be surpassed.

Pradasphere is fully booked into the new year and Bertelli said visitors have shown a tendency to spend more after immersing themselves in the brand’s history, sometimes going back to make an additional purchase after walking through the eight Pradasphere spaces.

“We see that the customers who go through the museum have a completely different perspective of the brand and also they browse the store with completely different minds,” said Bertelli, who has been identified as the future leader of the Prada Group. The 38-year-old, whose roles include executive chairman of Versace, is the son of creative director Miuccia Prada and Prada Group chairman Patrizio Bertelli.

Longtime Prada lovers will know that Mario and Martino Prada founded Fratelli Prada in 1913 in the historic Galleria. But they may never have seen in person the luxury bags and accessories, including a pleated evening bag with a devilish head-shaped clasp, its tongue sticking out, a detail that appeared on the Spring-Summer 2024 runway.

And it may be news that the brothers designed the brand’s signature inverted triangle logo.

Miuccia Prada’s third-generation entrance into the family business is announced with trademark nylon bags that she began designing in the 1970s, embodying the Prada high-low, industrial-luxury paradox, and a chocolate brown opera coat from her first runway collection presented in 1988.

The exhibition contains many runway hits, including the 2012 Flame heels and the Formica tile prints that gave birth to Prada’s “ugly chic” reputation, while also highlighting Miuccia Prada’s and the senior Bertelli’s reach into art, architecture, film and sport.

“Curiosity and having fun is what drives my parents,” the younger Bertelli said, adding that experimentation doesn't always bring immediate financial success, “but for sure it drives the enrichment of our story, and our culture and our knowledge.”

He cited as an example investments in sports and engineering made with the formation of the Luna Rossa America’s Cup sailing team in the 1990s, which helped develop the kind of materials expertise that led Prada to collaborate with Axiom Space on a space suit, a prototype of which is displayed at the end of the exhibition.

Prada helped design the suit’s outer layer, which is engineered to withstand extreme thermal conditions, as well as the high-performance inner layer, with a focus on thermal regulation and comfort. It is intended for astronauts walking on the moon on NASA’s Artemis IV mission, targeted for 2028.

Just 20 visitors are admitted to Pradasphere by appointment each hour to explore the compact eight rooms of the exhibition, which Bertelli promises will be in constant evolution.

Prada’s presence in the Galleria now spans eight floors, encompassing the existing Marchesi 1824 pastry shop and Osservatorio Fondazione Prada contemporary art space, alongside the new exhibition, private salon and apartment.

Most visitors end their journey in a secret underground passage connecting the menswear and womenswear boutiques, the latter occupying the original Fratelli Prada premises.

The passage contains “lesser-known” chapters from the brand’s history, including a chandelier dress created for Baz Luhrmann’s “The Great Gatsby.”

“It was a great experience,” said Luca Missio, an architect from the northeastern Italian city of Udine. “I recognized the stores I’ve visited around the world, in Tokyo and New York, in the models and displays. That was lovely.”


Tod’s Parts Ways with Creative Director Matteo Tamburini

Shoes of Italian luxury shoemaker Tod's are displayed in the window of the company's store in Zurich, Switzerland, April 25, 2019. (Reuters)
Shoes of Italian luxury shoemaker Tod's are displayed in the window of the company's store in Zurich, Switzerland, April 25, 2019. (Reuters)
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Tod’s Parts Ways with Creative Director Matteo Tamburini

Shoes of Italian luxury shoemaker Tod's are displayed in the window of the company's store in Zurich, Switzerland, April 25, 2019. (Reuters)
Shoes of Italian luxury shoemaker Tod's are displayed in the window of the company's store in Zurich, Switzerland, April 25, 2019. (Reuters)

Tod's creative director Matteo Tamburini will leave the company after nearly three years, the Italian luxury shoemaker said on Wednesday, without naming a replacement.

Tamburini, appointed in December 2023, previously worked at Bottega ‌Veneta. He ‌presented his ‌final ⁠collection for Tod's in ⁠September during Milan Fashion Week.

Tod's Chairman and CEO Diego Della Valle thanked him "for the creative and professional ⁠contribution he made during ‌his tenure, ‌for the commitment he ‌demonstrated, and for the ‌work carried out together with our company teams".

"I conclude this chapter with deep respect ‌for the work we accomplished and for the ⁠people ⁠who made it possible,” Tamburini said in the same company statement.

Tod's, previously listed in Milan, was taken private in 2024 by L Catterton, a private equity firm backed by French luxury group LVMH.


Sportswear Brand On Expects Higher Profit Margin After Strong Quarterly Sales

Shoes by On are pictured in the Swiss Sport Style shop, in Lausanne, Switzerland, September 14, 2021. (Reuters)
Shoes by On are pictured in the Swiss Sport Style shop, in Lausanne, Switzerland, September 14, 2021. (Reuters)
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Sportswear Brand On Expects Higher Profit Margin After Strong Quarterly Sales

Shoes by On are pictured in the Swiss Sport Style shop, in Lausanne, Switzerland, September 14, 2021. (Reuters)
Shoes by On are pictured in the Swiss Sport Style shop, in Lausanne, Switzerland, September 14, 2021. (Reuters)

Sportswear brand On raised its annual gross margin forecast after beating third-quarter sales estimates on Tuesday, as new product launches and celebrity collaboration efforts drove demand across its premium shoes and apparel collections.

The company has grown fast and expanded its store footprint globally, taking market share from bigger rivals such as Nike and Adidas.

The company said its holiday campaign ‌is underway and new ‌products are gaining traction. ‌On ⁠expects fourth-quarter sales growth ⁠to accelerate, even as it maintains its premium positioning and full-price discipline amid a promotional retail environment.

However, the company stuck to its annual sales forecast of 3.47 billion Swiss francs and 3.56 billion Swiss francs.

On, which authorized ⁠its first share buyback plan up ‌to $1 billion through the ‌end of 2029 in September, recently entered football, the ‌world's most popular sport, by signing Kylian Mbappe.

The ‌company did not mention him in the release after the French soccer star was forced to apologize for comments about Mao Zedong two weeks ago ‌that angered China.

US-listed shares were down 4% in volatile premarket trading. The ⁠stock ⁠has fallen nearly 20% so far this year.

On now expects fiscal 2026 gross profit margin to be around 67.5%, or about 66%, excluding US tariff refunds, compared with its previous forecast of at least 65%.

The Swiss company posted third-quarter sales of 931.4 million Swiss francs ($1.14 billion), compared with analysts' estimates of 929.3 million Swiss francs, according to data compiled by LSEG.