Hermès International SCA: Conf call feedback: Softer messaging on leather

研报英文原文证据摘录

Hermès International SCA: Conf call feedback: Softer messaging on leather

taly, Northern Europe, Germany, Greece and the UK following its UBS Cons.

recent space expansion. While local demand in the Middle East remained resilient, 12/26E 43.16 44.40

trends in concession markets were more mixed. Overall, management's comments 12/27E 50.39 51.09

suggest tourism, particularly Middle Eastern spending, remains an important swing 12/28E 54.13 56.29

factor, while growth is increasingly supported by strong local demand in markets such as

the US, Japan, Korea and parts of Europe. Zuzanna Pusz, CFA

Analyst

zuzanna.pusz@ubs.com

There are multiple factors underpinning the strength in margins +39 027 2100 226

One of the key positives from the release was the strength of the EBIT margin, which

Robert Krankowski

came in at 41.0% (vs. consensus of 40.4%). While management unsurprisingly

refrained from providing near-term guidance, it highlighted healthy product sell- robert.krankowski@ubs.com

through rates without any build-up in inventories. The company also pointed to a +44-20-7568 1152

favourable contribution from FX hedges in H1, while noting that the H2 impact will

depend on where exchange rates ultimately settle. In addition, Hermès reiterated its

intention to step up investments in communication and marketing initiatives to support

customer recruitment, alongside continued expansion of its sales teams in key markets

such as the US, Japan and South Korea. On raw material costs and pricing, management

indicated that price increases in 2027 are likely to be somewhat lower than those

implemented in 2026.

Valuation: Neutral, price target €1,795

RMS trades on 39.3x and 33.6x 2026e and 2027e P/E for 3-year sales and EPS CAGRs

(26e-29e) of +7% and +11%, respectively.