Hermes International: Hermès: Highlights from the 1H26 conference call

Research evidence excerpt

Hermes International: Hermès: Highlights from the 1H26 conference call

29 July 2026

Luca Solca

+41 582 723 126

Global Luxury Goods luca.solca@bernsteinsg.com

Hermes International Maria Meita

+44 20 7170 0540

Rating maria.meita@bernsteinsg.com

Outperform Eric Chen, CFA

Price Target +852 2123 2628

eric.chen@bernsteinsg.com

RMS.FP 2,150.00 EUR

Yi-Peng Khoo, CFA

+44 20 7676 6822

yi-peng.khoo@bernsteinsg.com

Hermès: Highlights from the 1H26 conference call

Hermès reported 1H26 results yesterday. This report contains key points from its investor

Close Date 28 Jul 2026

conference call. Results Quick Take: Hermès: 1H26 organic sales in line; EBIT 2% above

RMS.FP Close Price (EUR) 1,695.50

Management’s priority remains cultivating Hermès’ brand equity. Investors fret that this Price Target (EUR) 2,150.00

will come at the expense of the DD growth the market has come to expect - a difficult trade- Upside/(Downside) 27%

off for a company trading at >30x P/E (see Hermès: Valuations already discount a 'Ferrari 52-Week Range 2,417.00/1,491.50

reset'). These concerns have found a lightning rod in management’s commentary on the EDME 1,606.72

leather goods growth algorithm: a clarification that +6% growth refers to production hours, FYE Dec

not volumes per se, has been interpreted as a step-down in guidance. Additional commentary Div Yield 1.2%

that LFL pricing will be lower in FY27E than FY26E did not help, leading to a significant post- Market Cap (EUR) (M) 157,932

earnings share price reaction. EV (EUR) (M) 147,909

Performance YTD 1M 6M 12M

Hand-wringing around price and volumes leaves mix opportunities underappreciated Absolute (%) (29.5) (7.4) (26.2) (37.1)

(see Hermès: Stretching upwards). Hermès could still pull levers on marketing, category EDME (%) 9.1 1.3 6.5 17.8