- Hermes reported a 3Q sales growth at constant exchange rates of 11.3%, surpassing the estimated 10.5%.
- Leather goods sales rose by 14%, exceeding the forecast of 12.8%.
- Watches revenue saw a significant drop of 18.2%, falling short of the expected 9% decline.
- Perfumes sales increased by 10.6%, outperforming the anticipated growth of 7.86%.
- Silk and Textiles revenue grew by 4%, surpassing the estimate of a 1.36% decline.
- Ready-to-Wear and Fashion segment experienced a revenue increase of 13.5%, above the projected 12.4%.
- In France, revenue climbed by 13.1%, beating the estimate of 9.44%.
- Europe-wide revenue rose by 17.4%, exceeding the expected growth of 13.3%.
- In Japan, sales surged by 22.8%, outpacing the estimate of 20%.
- Asia Pacific revenue slightly increased by 1%, below the estimate of 2.3%.
- Overall Asia revenue saw a rise of 4.6%, which was less than the estimates that ranged up to 5.24%.
- The Americas experienced a revenue growth of 13.4%, surpassing the forecast of 12.3% growth.
- Total revenue reached EU3.70 billion, marking a year-over-year increase of 10%, slightly above the estimate of EU3.68 billion.
- Hermes confirms an ambitious goal for medium-term revenue growth at constant exchange rates.
A look at Hermes International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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 a high resilience score of 5, the company is well-positioned to withstand economic downturns and uncertain market conditions. This indicates that Hermes International has a strong foundation and stability in its operations.
In addition, the growth score of 4 suggests that Hermes International has good potential for expanding its business and increasing its market share in the luxury goods industry. This combined with a momentum score of 3 indicates that the company is moving in the right direction, albeit with some room for improvement. While the value and dividend scores are average, the strong resilience and growth scores bode well for the future prospects of Hermes International as it continues to design and distribute luxury accessories and apparel worldwide.
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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