- Hermes’ sales increased by 9% at constant exchange rates, surpassing the estimate of 8.9%.
- Leather goods sales reported a substantial growth of 14.8%, beating the 11.9% estimate.
- Watches revenue decreased by 5.5%, but performed better than the anticipated decline of 7.8%.
- Perfumes revenue faced a sharp decline of 7.2%, contrary to the expected 2% growth.
- Silk and Textiles revenue rose by 2.2%, slightly under the 3.1% forecast.
- Ready-to-Wear and Fashion revenue grew 3.8%, below the predicted 8.75% increase.
- France’s revenue increased by 4.1%, falling short of the 10.5% estimate.
- Europe’s revenue grew by 9.1%, which did not meet the estimates of 11.5%.
- Japan’s revenue increased by 14.7%, surpassing the 13.6% projection.
- Asia Pacific reported a revenue growth of 5.2%, better than the expected 4.49%.
- Asia’s overall revenue increased by 6.9%.
- The Americas revenue grew by 12.3%, exactly matching the estimate.
- Hermes reported a total revenue of €3.91 billion, a 5.6% year-over-year increase, just under the €3.93 billion estimate.
- Recurring operating income surged to €3.33 billion, a 5.7% year-over-year rise, exceeding the forecast of €3.26 billion.
- First-half revenue was €8.03 billion, an increase of 7.1% compared to the previous year, slightly below the €8.05 billion estimate.
- The recurring operating margin was 41.4%, compared to 42% from the previous year and better than the 40.4% estimate.
- Net income was €2.25 billion, marking a 5.2% decline from the previous year, but above the expected €2.22 billion.
- Hermes aims for continued revenue growth at constant exchange rates in the medium term.
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 score in resilience and growth, the company appears well-positioned to weather market uncertainties and capitalize on opportunities for expansion. Additionally, its momentum score suggests a positive trend in the stock’s performance. Although the value and dividend scores are more moderate, the strong emphasis on growth and resilience bodes well for the company’s future prospects.
Hermes International, known for its luxury accessories and apparel, continues to attract customers with its wide range of high-end products. The company’s focus on quality and craftsmanship has solidified its reputation in the luxury market. With a strong emphasis on growth and resilience, Hermes International remains poised for continued success in the luxury retail sector.
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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