- Hermes 2Q Sales: Sales at constant exchange rates increased by 13.3%, beating the estimate of 11.5%.
- Leather Goods: Sales grew by 17.9%, surpassing the estimate of 14.7%.
- Watches: Revenue declined by 4.9%, falling short of the estimated 3.45% growth.
- Perfumes: Revenue rose by 5.6%, exceeding the estimate of -1.25%.
- Silk and Textiles: Revenue decreased by 5.6%, performing worse than the anticipated -0.5%.
- Ready-to-Wear and Fashion: Revenue increased by 15.1%, above the estimate of 11%.
- Geographical Performance:
- France: Revenue rose by 15.1%, outperforming the estimate of 12.6%.
- Europe: Revenue increased by 18.2%, beating the estimate of 11.8%.
- Japan: Revenue increased by 19.5%, slightly below the estimate of 19.6%.
- Asia Pacific: Revenue grew by 5.5%, exceeding the estimate of 4.75%.
- Asia: Revenue grew by 7.9%, below the estimate of 9.47%.
- Americas: Revenue rose by 13.3%, outperforming the estimate of 11.2%.
- Overall Financial Performance:
- Revenue: EU3.70 billion, up 12% year-over-year (y/y), beating the estimate of EU3.65 billion.
- First Half Revenue: EU7.50 billion, up 12% y/y, slightly exceeding the estimate of EU7.45 billion.
- Recurring Operating Income: EU3.15 billion, up 6.8% y/y but below the estimate of EU3.17 billion.
- Recurring Operating Margin: 42%, down from 44% y/y, close to the estimate of 42.5%.
- Net Income: EU2.37 billion, up 6.4% y/y, above the estimate of EU2.3 billion.
- Future Outlook: Despite global economic, geopolitical, and monetary uncertainties, Hermes maintains an ambitious goal for revenue growth at constant exchange rates.
A look at Hermes International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Hermes International shows a promising long-term outlook. With high scores in Growth and Resilience, the company is positioned well for sustainable expansion and durability in challenging market conditions. The strong Momentum score also indicates positive market sentiment and investor interest in the company’s future prospects. Although the Value and Dividend scores are moderate, the high ratings in Growth and Resilience suggest that Hermes International‘s focus on innovation and ability to weather economic uncertainties bode well for its overall performance.
Hermes International, known for its luxury accessories and apparel, operates a chain of boutiques offering a wide range of high-end products that appeal to discerning customers worldwide. The company’s emphasis on quality and exclusivity has contributed to its strong Growth and Resilience scores, showcasing its ability to adapt and thrive in the competitive luxury market. With a diverse product portfolio that includes leather goods, clothing, perfumes, and jewelry, Hermes International continues to uphold its reputation for craftsmanship and sophistication, positioning it favorably for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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