Hermès is pressing ahead with an expansion of its Swiss watchmaking operations despite reporting a decline in watch sales during the third quarter.

Revenue from watches hit €125 million in the three months to 30 September, down 6% at constant exchange rates and 5% on a reported basis. Across the first nine months of 2026, the division generated watch sales of €393 million, representing a decline of 2% at constant exchange rates.

The figures reverse the improvement recorded during the second quarter, when watch sales returned to growth following a weaker start to the year.

Hermès is nevertheless continuing to invest in its watchmaking division. The luxury house confirmed that it is expanding its watchmaking site in Le Noirmont, Switzerland, with completion scheduled for 2028.

It also described the launch of the H08 Squelette, introduced at Watches and Wonders Geneva in April, with a new-generation titanium movement, as having been “successful”.