he first such change in nearly four decades. Steady growth The group’s global revenue rose 9 per cent at constant exchange rates to €11.9 billion in the first nine months of the year, with all regions posting growth. Asia, excluding Japan, advanced 4 per cent, while Japan led with 15 per cent, and the Americas accelerated by 13 per cent.  Leather goods, which account for nearly half of total revenue, grew 13.3 per cent, just below forecasts, with inventory tightening ahead of the crucial holiday and Lunar New Year seasons. Finance chief Eric de Halgouet said inventory levels would be “ramped up again before Christmas and Chinese New Year.” The China question and US momentum After two years of sluggish recovery amid property market turmoil and consumer caution, brands are watching for any hint of a rebound.  Last week, LVMH reported its first quarterly growth of the year, with Mainland China turning positive in the third quarter. In September, the group’s retail sales of luxury goods in mainland China ticked upward for the first time this year. Meanwhile, L’Oreal earlier this week flagged its first growth in China in two years. The company’s CEO, Nicolas Hieronimus, estimated that the Chinese beauty market grew about 3 per cent in the quarter.  “There are two encouraging signs, which make us optimistic from a macroeconomic point of view. First of all, there is more stability in real estate in Tier 1 cities in China. So that’s a positive signal,” Halgouet said during the company’s earnings call.  “And secondly, we have another reason to be optimistic. It’s the pickup of the financial markets in Continental China and Hong Kong, which is also, yes, a good sign.  And for the first week of October, which was the Golden Week in Continental China, we saw quite strong and dynamic business. We can’t extrapolate this for the whole quarter, but nonetheless, it is encouraging.” Across Asia-Pacific, Hermès’ footprint has quietly deepened. The Bangkok Central Embassy, Taichung, Macau Four Seasons and Seoul Galleria stores all reopened this year following major renovations. Hermès’ growth story in the United States is also gaining momentum.  Sales in the Americas rose 13 per cent, with the company opening new stores in Scottsdale, Arizona and Nashville, Tennessee, and completing the renovation of its flagship in Mexico City. Foot traffic in US stores was described as “strong and even across regions”. Hermès opted not to raise prices in the US this year, after a 5 per cent hike in May to offset tariff costs. The creative director change Two days before releasing the financial results, the house announced the appointment of Grace Wales Bonner as creative director of men’s ready-to-wear, marking one of the most significant creative appointments in its modern history.  The 35-year-old British-Jamaican designer succeeds Véronique Nichanian, who led the division for an extraordinary 37 years.  Wales Bonner described the move as “a dream realized”.  “Her take on contemporary fashion, craft and culture will contribute to shaping Hermès men’s style, melding the house’s heritage with a confident look on the now,”  Pierre-Alexis Dumas, general artistic director of Hermès, said.  “Grace’s appetite and curiosity for artistic practice strongly resonate with Hermès’ creative mindset and approach. We are at the start of an enriching mutual dialogue.” Wales Bonner’s first collection for the brand is set to debut at Paris Fashion Week in January 2027. She became the first Black woman to lead a creative division at Hermès. The company is expected to pause the menswear season in 2026 to give her time to immerse herself in the brand’s ateliers. Challenges ahead Despite consecutive quarters of growth, Hermès is not immune to macroeconomic uncertainty. Currency headwinds shaved €254 million off revenue in the first nine months of this year.  The latest quarterly performance also fell slightly short of investor expectations, triggering a 4.2 per cent drop in Hermès shares following the results announcement. Analysts said the decline reflects investor impatience rather than structural weakness, noting that Hermès’ tightly controlled production limits its short-term growth potential just as Chinese demand starts to stabilize. Further reading: Why Hermes is testing America’s luxury pain threshold.