Hermes intl: Stiefel confirms his advice to keep

(CercleFinance.com) – The analysis notes, for the results of the 1st half of 2022, a significant outperformance in Asia and a significant improvement in the margin. ‘ Hermès reported organic revenue growth in the second quarter above forecast (+19.5% against +13%), which should not come as a big surprise after the recent better than expected results of its peers like LVMH. ‘

However, Stifel mentions the resilient performance of Hermès in Asia-Pacific (+9.6% against a consensus of +5%, as Greater China rebounded strongly in June) and in North and South America (+26% against +18%) in the second quarter.

‘ The main surprise today was the extent of Hermès’ margin improvement (42.1% vs. 37.8% for the consensus, +140 basis points compared to the previous year), which results in an operating result of 2.3 billion euros, or 14% more than the consensus ‘, continues the analyst.

And to note that gross margin fell 30 basis points from a year ago to 71.2%, ‘but this decline was more than offset by the 170 basis point drop in the expense ratio’ operation/turnover ‘.

General expenses/revenue decreased by 170 basis points compared to the previous year to reach 29.1% of revenue.

Hermès achieved operating income of +34% year-on-year in the first half. Hermès’ net cash increased to 7.7 billion euros at the end of June.

Stifel confirms his advice to keep with a target of 1,100E.

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