Hermès −5–8%: Q3 sales +4.3% cc vs ~5.2% expected, weakest growth since 2020 as China accessories fall. Read-across for

[LondonNewsTrader]

Hermès is one of the bigger European losers this morning. It opened about −5% and was down closer to −7/−8% at points, after a rare miss.

The numbers (Reuters)
- Q3 revenue €4.10bn, +4.3% at constant currency vs ~5.2% expected (Visible Alpha poll)
- Weakest quarterly growth since early 2020
- Leather goods (Birkin/Kelly) +10.8%, broadly steady
- Ready-to-wear & accessories −2%, the first decline in years. The CFO blamed weak Chinese demand for high-volume accessories (belts, gloves and similar), the entry-level items
- Asia ex-Japan roughly flat. The US is strong across all stores and categories
- The stock was already −36% YTD before today

How I read it: Hermès was the "untouchable" name in luxury. A miss coming from the entry-level products in China, after LVMH's soft update earlier this month, says the aspirational buyer is still pulling back. The valuation-reset argument gets louder.

For US hours, there's possible sympathy pressure on US-listed luxury and accessories names. The US commentary is the offset, so I wouldn't assume a clean read-across. On the European side, Kering, LVMH, Richemont (already −1.5% early) and Burberry are the ones to watch for follow-through.

Sources: [Reuters via Euronext](https://live.euronext.com/en/financial- ... ccessories) | [Reuters via Investing.com on the STOXX open](https://www.investing.com/news/stock-ma ... bs-4964837)

Anyone shorting luxury on this, or is −36% YTD already pricing it in? Does the China accessories line worry you more than the headline miss?