UBS has revised its price target for luxury brand Hermès, lowering it from 2,515 euros to 2,475 euros while maintaining a positive rating.

Analyst Zuzanna Pusz expressed optimism for Hermès as it enters the new year, despite challenges in the industry.

The updated profit estimates reflect anticipated higher taxes in France.

Hermès International, known for its luxury products, reported that its net sales are primarily derived from:

• Leather and saddlery (41.3%)
• Clothing, footwear, and accessories (28.9%)
• Silk and textile goods (6.9%)
• Watches (4.6%)
• Perfumes (3.7%)
• Other items (14.6%)

As of the end of 2023, the company operated 294 stores globally, with significant sales distribution in the Asia/Pacific region (46.7%) and the Americas (18.6%).

Analyst estimates indicate a general positive recommendation, with the last closing price recorded at 2,191.00 euros and an average target price of 2,253.82 euros, suggesting a potential upside of 2.87%.