- Hermes’ 4Q Sales exceeded expectations with a 17.6% increase at constant exchange rates compared to an estimated 11%.
- Leather goods showed significant growth, with sales rising by 21.5% against an expectation of 12.4%.
- Watches revenue increased by 2.6%, surpassing the forecast of a decline by 8.11%.
- Perfume sales rose sharply by 16.9%, beating the anticipated 9.42% increase.
- Silk and Textiles revenue improved by 7.3%, above the estimated 2.18% growth.
- Ready-to-Wear and Fashion garnered a 17.4% rise, exceeding the prediction of 13%.
- Geographically, France revenue grew by 11.8%, just shy of the 12.1% estimate.
- Europe saw a robust 17% rise in revenue, outperforming the 14% estimate.
- Japan’s revenue surged by 22.4%, well above the 17.6% expectation.
- Asia Pacific revenue increased by 8.9%, far exceeding the forecast of 1.82%.
- Overall Asia region revenue grew by 11.5%, surpassing the forecasts ranging around 4.23%.
- The Americas reported a substantial revenue increase of 22.3%, compared to the 13.1% estimate.
- Total 4Q revenue was €3.96 billion, marking an 18% year-over-year increase, above the projected €3.74 billion.
- For the full year 2024, Hermes’ revenue reached €15.17 billion, a 13% increase, beating the €14.93 billion estimate.
- Recurring operating income was €6.15 billion, up 8.8% year-over-year, exceeding the €6 billion estimate.
- The recurring operating margin stood at 40.5%, slightly below the previous year’s 42.1% but above the 40.2% estimate.
- Net income increased by 6.8% to €4.60 billion, surpassing the anticipated €4.49 billion.
- The dividend per share was set at €16, though expectations were at €17.72.
- Operating cash flow increased by 5% to €5.38 billion.
- Adjusted free cash flow rose significantly by 18% to €3.77 billion, beating the anticipated €3.35 billion.
- Hermes maintains an ambitious medium-term revenue growth target at constant exchange rates.
- An exceptional dividend of €10 per share is to be proposed at the shareholders’ meeting.
A look at Hermes International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| 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, Resilience, and Momentum, the company appears well-positioned for future success. The Growth score of 4 suggests potential for expansion and development, while the Resilience score of 5 indicates the company’s ability to withstand economic challenges. Additionally, the Momentum score of 5 reflects strong positive market momentum for Hermes International.
Hermes International, known for its luxury accessories and apparel, operates a chain of boutiques offering a wide range of products such as leather goods, scarves, clothing, perfume, watches, and jewelry. Despite moderate scores in Value and Dividend, the company’s strong performance in Growth, Resilience, and Momentum bodes well for its future prospects in the luxury goods market.
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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