4D·

Hermes quarterly figures

  • H1 sales: €8.03 billion → +8% at constant exchange rates compared to H1 2024 (previous year: €7.50 billion)
  • Sales Q2 alone: €3.91 billion → +9% in the comparative period
  • Recurring operating income: €3.33 bn (+6% YoY), margin now 41.4% vs. 42% in the previous year
  • Net profit (Group share): €2.246 billion (-5% unadjusted), adjusted +6% to €2.5 billion compared to previous year
  • Free cash flow: €1.85 bn (+4% YoY) with operating CF of €2.73 bn (€0.32 bn investments)



Comparison with analyst estimates:


  • Sales growth of +9% was slightly below the consensus of around +10%
  • Profit growth of +6% (adjusted) was roughly in line with expectations
  • The operating margin fell from 42% to 41.4%, which surprised several market participants



Why did the share price still fall by almost 5%?


Slight margin pressure - the margin decline despite sales growth was interpreted as a warning signal, especially for a luxury stock with an otherwise over 42% margin.

Dampening signals from China - growth in Asia (ex-Japan) stagnated at +1-3%, China remains fragile

High expectations - Investors expected consistent top margins; even small deviations were viewed negatively.

Economic environment - Uncertainty due to geopolitical situation, weakness in the European luxury market and trade tensions increased nervousness


I personally see the slight fall in the share price as a buying opportunity $RMS (-3,58 %)

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9 Comentarios

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Confirms my preference for Hermes over LVMH
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@Sansebastian definitely!
I'm also considering liquidating my LVMH position completely and switching to $RMS $RACE and $BC.
But I am still waiting for a good time at $MC, otherwise I would have to realize the position at a loss.
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@ShindyDeanMartin I feel the same way 🥲
How many % are you down?
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@ShindyDeanMartin I can understand your concerns about selling at a loss. But: if you sell now and put the money into a share that gives you a better return in the meantime, you'll get more out of it. Nobody likes selling at a loss, but just approach it rationally 🙂
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@Aktienorang-Utan It still works, about 15% :/ and you?
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@Sansebastian yes, you're right too, keyword (opportunity costs), but I honestly think I'm looking for a turnaround at LVMH in the short to medium term and would then of course like to take the price gain with me 😅
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@ShindyDeanMartin you'll already know what you're doing 😎
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@Sansebastian just a quick look at the character of the chart is enough to agree with you 🤝
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