HESAF News and Press, Hermes Intl Sa From 01/24/23

Summary The first month of 2023 (and the last month of the retail industry’s Q4 2022) saw America’s largest party supply store file for Chapter 11 bankruptcy, a move that the StarMine credit models had predicted about a year ago. According to StarMine, Bed Bath & Beyon...

Summary Capri operates in a large and growing personal luxury market that is relatively resilient to adverse macro headwinds. The company may become a beneficiary of industry consolidation. Strategic brand development plans include both expanding its physical footprint and increasin...

Summary Divergence between Farfetch's growth with luxury brands such as LVMH, Richémont, and Hermés. Luxury shoppers prefer the in-store experience to e-commerce and even within e-commerce, monobrands have gained share over marketplaces. Top large luxury brands have little...

Summary The French luxury giant, Hermes, has seen an impressive run-up in price in the last quarter. This is supported by sustained growth across markets and high margins. But the expectation of weak global growth, continued uncertainty about China and sustained inflation can tell on it...

Summary LVMH is up by 21% since my last update in October, supported by strong sales numbers for the first nine months of 2022. Is there more upside to it? Encouragingly, demand from Asia ex-Japan has picked recently and the group has seen consistent double-digit growth across seg...

Summary Supportive Q3 sales thanks to EU tourism recovery and lower restrictions in China. Long-term outlook maintained. Still trading at a premium valuation. The neutral rating is confirmed. Today, Hermès International Société en commandite par action...

Summary Luxury brand Tapestry, which owns Coach and Kate Spade, has an attractive P/E ratio of sub-10x. But that doesn't make it a screaming buy. As an affordable luxury brand, it doesn't have the cushion that the likes of Hermes and LVMH do. Its demand slowdown and to a lesser ex...

Summary Much like other luxury stocks and even the broader markets, Cartier owner Richemont, has had a bad run in 2022. Additionally, though, its long-term performance also lags peers. Its operating margin is muted compared to peers, but with the sale of its lossmaking online plat...

Summary Gucci owner Kering SA's P/E ratio at sub-14x makes it highly attractive compared to peers like Hermes and LVMH, which are trading at over 40x and 20x, respectively. The company's resilience in downturns and recent performance are impressive. But Kering is vulnerable to a s...

Summary With a P/E ratio of over 40x, Hermes is highly valued even compared to other luxury peers, many of which have higher than average market multiples too. Its continued growth in Asia, despite China's slowdown and expanding margins even in an inflationary period, make it stan...