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Stocks for some of Europe's most famous luxury brands are plummeting to their lowest level in years as Chinese customers cut back purchases and an industry revamp fails to launch.
Hermès International Société en commandite par actions (HERM:CA) Q3 2026 Sales/Trading Call Transcript
Hermes said sales growth lost pace in the third quarter, as hopes of a recovery in luxury demand dwindle.
Microsoft grew operating income by about 18%, and we estimate its average gross asset base grew in the low 20s, leading to continued healthy returns on invested capital of almost 30%. Revenues grew 28%, and Meta launched a slew of AI products and updates that the market viewed positively. Apple grew revenue by 16% and posted even stronger gross margin dollar growth as Apple navigated input pricing pressures well.
In a challenging time for the luxury market, the Hermès (HESAY) stock hasn't gone anywhere in recent months. But recovery looks entirely likely. The company's H1 2026 results reveal improvement in geographies affected by the US-Iran war and the margins remain very strong too. With the stock's price at over three year lows and its market multiples attractive, I'm reiterating a Buy rating, even as geopolitical uncertainty and sluggish growth in China are concerns.
Hermès is now rated a strong buy after a rare 43% share price collapse, despite resilient fundamentals and premium brand positioning. Q1 2026 revenue growth of 5.6% missed expectations, but long-term EPS trends remain robust and profit margins have expanded to nearly 30%. Temporary headwinds—Middle East conflict, travel disruptions, and industry-wide weakness—do not threaten HESAY's secular growth or exclusive client base.
RELEASE Paris, May 15, 2026 INFORMATION RELATING TO THE TOTAL NUMBER OF VOTING RIGHTS AND SHARES COMPRISING THE SHARE CAPITAL In accordance with the provisions of Article L. 233-8 of the French Commercial Code ( Code de commerce ) and Article 223-16 of the General Regulations of French Autorité des Marchés Financiers (AMF), Hermès international publishes each month, before the 15 th day of the following month, the total number of voting rights and the number of shares comprising the share capital if they have varied from those previously published.
On May 14, 2026, we present a DCF analysis for Hermes International SA (HESAY), a luxury goods company currently facing significant price performance challenges
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