Hermès, a luxury goods group, recently reported lackluster quarterly performance. However, this was seen as encouraging considering the current industry trends.
Hermès derives its net sales primarily from different product categories. The majority of its sales come from leather and saddlery (41.3%), followed by clothing, footwear, and accessories (28.9%). Silk and textile goods contribute 6.9% to the net sales, while watches account for 4.6%. Perfumes make up 3.7% of the sales, and the remaining 14.6% comes from other items.
The company operates 294 stores globally, with a significant sales distribution in Asia/Pacific (46.7%) and the Americas (18.6%). UBS, a bank, has increased its price target for Hermès from 2,390 euros to 2,515 euros, while maintaining a "Buy" rating. The bank has also revised its earnings estimates for 2025 and 2026.