CITIC Luxury Goods: Hermès Group 26Q2 Results Snapshot: Asia-Pacific Performance Below Expectations

English summary

Overview: Hermès Group H1 revenue was EUR 8.16 billion, +1.6% YoY at actual exchange rates and +6.1% YoY at constant exchange rates. Operating profit increased +0.7% YoY to EUR 3.35 billion, with an OP Margin of 41.0%, down 0.4 pct YoY, better than market expectations (vs. Bloomberg consensus of 40.4%). 26Q2 total revenue was EUR 4.09 billion, +4.8% YoY at actual exchange rates and +6.7% at constant exchange rates, broadly in line with market expectations (vs. Bloomberg consensus of +6.5%). By region: 26Q2 Europe/Japan/Asia (ex-Japan)/Americas/Middle East revenue was EUR 1.03 billion/390 million/1.65 billion/850 million/170 million respectively, +7.4%/+12.3%/+2.5%/+13.7%/-2.4% YoY at constant exchange rates. Among them, Asia (ex-Japan) was relatively weak (vs. Bloomberg consensus of +4.5%); the Americas market was broadly in line with expectations (vs. Bloomberg consensus of +13.9%).…