Hermès ($RMS (-1.06%)) is not a classic fashion tradebut a structural bet on the top 0.1% of the world's population and their unwavering purchasing power.

Luxury is just the cover here. The real value comes from extreme scarcity, vertical integration and uncompromising pricing power.

Quality instead of quantity, craftsmanship instead of marketing, desirability instead of discount battles.

⚙️ What does Hermès do?

➡️ Leather goods & saddlery (core business):

The heart of the Group accounts for around 50% of sales. Hermès controls the entire chain - from its own tannery to the finished bag. → Excellence + heritage + highest margins.

➡️ Vertical integration:

Total control over the supply chain. Hermès owns its factories and trains its own craftsmen. No outsourcing, no compromises. → structural moat through operational self-sufficiency.

➡️ Artificial scarcity (unique selling point):

Demand for icons such as the Birkin or Kelly Bag permanently exceeds supply. Waiting lists of several years are not a bug, but a feature. → maximum value retention + guaranteed sales security.

➡️ Pricing power:

Hermès dictates the prices. The loyal core customer base (UHNWI) accepts increases far above the inflation rate without changing their purchasing behavior. → Highly scalable profit leverage.

➡️ Diversification:

Strong expansion into ready-to-wear, jewelry, home accessories and beauty. These divisions leverage brand prestige for additional growth. → Strategic expansion of the ecosystem.

👉 Hermès = The "indestructible" luxury infrastructure platform.

📊 Figures & growth (Q4 2025)

📈 Turnover Q4:

~€4.1 billion (+10% organic growth) → significant outperformance compared to analyst estimates (8.2%).

📊 Annual sales 2025:

Breaking the € 16 billion mark for the first time (+9% adjusted for currency effects).

📈 Profitability:

Record margin (EBIT) of 41% → an absolute peak value in the entire sector and beyond.

👥 Regional strength:

All regions show double-digit growth (Japan +14%, America +12%, Europe +11%). → Total resilience to local economic weaknesses (e.g. China).

💳 Pricing power:

Increases of 5-6% already announced for 2026. → Direct margin protection against inflationary costs.

Conclusion:

Hermès delivers "Perfection" in numbers. While competitors struggle, Hermès scales through price and unchallenged desirability.

🟢 The opportunities

🟢 Resilience of the target group:

The ultra-rich save last on luxury handbags. The business model is virtually immune to classic recession cycles.

🟢 Production expansion as a guarantee for growth:

Continuous opening of new leather factories (24th factory in 2025) meets the enormous demand in a controlled and organic manner.

🟢 Beauty & Skincare as a margin lever:

Entry into the high-end skincare market from 2026 offers new, highly scalable potential with extreme gross margins.

🟢 Resale value as an asset class:

Hermès bags are considered a more stable investment than gold. This massively supports primary market demand as an "investment substitute".

🔴 The risks

⚠️ Sports assessment:

With a P/E ratio of ~49 (February 2026), "perfection" is priced in. The share is not forgiving of operational mistakes.

⚠️ Currency headwinds:

As a global player, Hermès reacts sensitively to a strong euro, which can dampen nominal growth in the short term.

⚠️ Leather goods cluster risk:

50 % sales dependency on one segment. A change in trend for core models would be a structural risk.

⚠️ Geopolitical dependency:

Trade conflicts or luxury taxes in key markets (USA/China) could slow down momentum.

💡 Conclusion & outlook

Hermès is not a short-term fashion tradebut a structural bet on the global concentration of wealth.

🔹 Short term:

Sensitive to valuation levels, currency effects & market sentiment towards quality stocks.

🔹 Long-term:

ROI machine with a deep cultural moat, extreme pricing power and growing profitability on its own.

🎯 Investment case:

Leverage on artificial scarcity + pricing power + capacity expansion + ultra-luxury resilience → Structurally value-enhancing, operationally highly profitable, the gold standard for the portfolio in the long term.

💬 Community question:

👉 The ultimate "safe haven" with an unrivaled moat

or

👉 simply too expensive for an entry at this P/E ratio?

I am curious about your assessment 👇

After more than 1.5 years in the portfolio, today is the end: I have sold my position in Tomra Systems ($TOM (+1.65%))completely.

Why was this?

Because on the stock market you are not rewarded for "waiting for things to get better", but for holding the best assets.

The hard facts after today's Q4 figures (13.02.2026):

Recycling crisis without end:

While the deposit business (Collection) is stagnating (+2%), the recycling division is slumping massively (-27% turnover).

Management capitulation:

Management openly admitted today that the problems in the recycling market will be solved by 2027 will continue. This means: at least another 12-18 months of "dead capital".

Cash flow collapse:

The operating cash flow fell from € 83 million to just 24 million has collapsed. This is no longer a growth case, this is a restructuring story.

The switch to Hermès ($RMS (-1.06%)):

Instead of hoping for a political miracle with Tomra, I invested the capital directly in Hermès directly.

ROI machine:

While Tomra is cutting back, Hermès yesterday (12.02.) posted record figures with a 41% margin delivered.

Analyst tailwind:

Bernstein has just upgraded Hermès to "Outperform" (target price € 2,650).

Real pricing power:

Hermès simply raises prices by 5-6% in 2026 because demand permanently exceeds production.

My conclusion:

30% down on Tomra hurts in the short term, but the opportunity cost of being trapped in this "drama" for another year would be significantly higher.

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Even with luxury, there is no money to be made in the short term at the moment. So goodbye to $RMS (-1.06%) . In future, I should stay true to my motto and stay away from consumer goods of any kind.

The multibagger has entered the luxury consumer market with leverage. As I cannot afford the $RMS (-1.06%) share, I have opted for a moderate derivative. I have been watching it for over 2 months now. It never went lower than this morning's level. So I think it's worth taking a risk.

Hello dear community 🙋‍♂️

In view of the downturn on the stock market, I would be interested to know which shares are on your watch list! Do you want to use the dip to buy more?

I have $RMS (-1.06%)
$MSFT (+1.44%) and possibly $MAIN (+2%) as a dividend stock! I'm also curious to see how $NFLX (+1.43%) will develop today after the figures!

If it goes "really downhill" again, then I will also increase my ETF's a bit!

Best regards

$RMS (-1.06%) and $MC (+0.69%) both stand for luxury, but pursue different success models that complement each other ideally in the portfolio. Hermès impresses with its extreme exclusivity, strictly controlled growth, high margins and exceptional pricing power. The artificial scarcity of products ensures stable demand - even in economically weaker phases. The downside: growth is deliberately limited and the share is usually traded at a high valuation.

LVMH, on the other hand, plays to its strengths through diversification and size. The group combines numerous iconic brands in fashion, leather goods, spirits, watches and cosmetics and benefits more from global consumer and travel trends. As a result, LVMH offers more growth potential, but is also more cyclical and more susceptible to fluctuations than Hermès.

Together, the two stocks form a strong luxury duo: stability and exclusivity meet breadth and economies of scale. For long-term investors, this combination can help to exploit opportunities in the luxury segment and better diversify risks.

How do you see it? Would you opt for Hermès or LVMH - or would you put both in your portfolio?

I'm curious to see when it will continue, or that it will remain at the current P/E ratio of 50 in the range between €2150 and €2200 😁 For me, this is a share that you can hold for an eternity. But you always have to be a bit cautious, especially in the luxury sector, things can always go up and down very quickly. $RMS (-1.06%) but one of my favorites for the long term

$RMS (-1.06%) and $TSLA (+0.65%)

would be nice if the two would go up again 😁😁😁😁