Hermes Shares Jump as Fourth-Quarter Revenue Surges
Shares in luxury-handbag maker Hermes soared after the company reported strong fourth-quarter revenue, outpacing its competitors in the industry. The surge in sales has driven shares up by 5.2%, reaching EUR2,181.50.
Hermes Exceeds Expectations with Strong Q4 Results
Hermes reported Q4 revenue of EUR3.36 billion, a 17.5% increase at constant exchange rates compared to the same period last year, surpassing analysts’ expectations of EUR3.26 billion. The company’s performance has been praised by experts, with Bernstein analysts highlighting Hermes as a top quality brand.
Operating and Net Profit Also Beat Expectations
Hermes achieved an operating profit of EUR5.65 billion for 2023, slightly surpassing the estimated EUR5.52 billion. Additionally, the company’s net profit jumped by 28% to EUR4.31 billion, exceeding analysts’ estimates of EUR4.03 billion.
Strong Performance in the Americas Region
Hermes reported a revenue of EUR717 million in the Americas, representing a 22% increase at constant exchange rates compared to the previous year. This success has been attributed to the revival of the American consumer market, driven by increased confidence and lower inflation.
Positive Outlook for 2024
Hermes has indicated price increases of 8%-9% in 2024, which has been viewed as a positive sign for the company’s future. Analysts at Bernstein believe this, coupled with the company’s continued brand momentum, will bode well for Hermes in the coming years.
Hermes Confident in Medium-Term Growth
Hermes has expressed confidence as it looks ahead to 2024. The company has reaffirmed its medium-term guidance for revenue growth at constant exchange rates, emphasizing its strong position in both the handbag and non-leather categories. Analysts at Citi also share this positive sentiment, stating that Hermes remains well-positioned for success in the near future.
Analyst comment
Positive news for Hermes. Shares jump, surpassing competitors. Q4 revenue exceeds expectations. Operating and net profit also beat estimates. Strong performance in Americas region. Positive outlook for 2024 with price increases and continued brand momentum. Confident in medium-term growth. Market expected to continue to perform well.
