Hermes International — Financial Overview, Stock Price, Market Cap

Financial Performance

5Y price score: 49

10Y return: 404.1%

DATE RANGE:

EUR Per
Share

By default your notes are visible only to you.

1529.0

52-week range

2421.0

1,688

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

2.5 %

Dividend Yield TTM

1.1 %

Market cap

176,801

Price / Earnings TTM

39.2

Price / Book TTM

9.4

PEG TTM

(21.5)

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

(27.6) %

42.3 %

404.1 %

Free cash flow per share growth

5 %

238.7 %

354.4 %

Earnings per share growth

(1.8) %

226 %

365.1 %

Founded: 1,837

Employees: 23,242

Business Summary:Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, clutches, briefcases, luggage, small leather goods, diaries and writing objects, saddles, bridles, and a range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes. It also provides silk and textiles for men and women; art of living and tableware products; perfumes; and watches. In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious leathers. It sells its products through a network of 303 stores worldwide. The company also sells watches, perfumes, and tableware through a network of specialized stores. Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France. Hermès International Société en commandite par actions operates as a subsidiary of H51 SAS.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2025 Q4 (Feb 12, 2026)

1) Financial Performance Overview
- Hermes achieved a 9% growth in revenue for 2025, exceeding EUR 16 billion in turnover.
- Q4 sales reached EUR 4.1 billion, reflecting a 10% growth at constant exchange rates.
- Operating income increased by 7%, and net profit rose by 5.5%, despite a EUR 500 million negative impact from currency exchange rates.
- The gross margin improved to 71.1%, up from 70.3% in 2024.
- The company reported a recurring operating profitability of 41% for 2025.

2) Segment Performance and Growth Drivers
- Leather Goods and Saddlery led growth with a 13% increase, driven by strong demand and increased production capacity.
- Clothes and Accessories grew by 6%, while Silk and Textiles saw a 5% increase.
- The Perfume, Beauty, and Watches segments faced challenges, with Perfume down 8% and Watches down 2%.
- All geographic regions, except for Perfume, recorded solid growth, with double-digit increases in Europe, Japan, America, and the Middle East.

3) Strategic Initiatives and Investments
- Hermes invested EUR 1.2 billion in operational capacity, including new leather workshops and production facilities.
- The company opened two new stores in the U.S. and continued renovations across its global distribution network.
- The CSR approach included a EUR 328 million payout to employees and a commitment to sustainability, reducing emissions significantly since 2018.
- The company plans to open its 25th leather workshop in Gironde in 2026, continuing its focus on vertical integration.

4) Challenges and Market Dynamics
- The company faces uncertainty in the global economic landscape, particularly in China, where customer behavior is shifting.
- There are concerns about the aspirational customer base and competition from local brands in China.
- Hermes aims to maintain desirability and exclusivity in its products, despite potential market saturation in the second-hand luxury market.
- The Perfume division's performance was weaker than expected, prompting a reevaluation of strategies in that segment.

5) Guidance and Future Outlook
- Hermes remains confident in its long-term growth strategy, projecting continued investment in production and retail expansion.
- The company anticipates a 5-6% price increase in 2026 to offset rising production costs and currency effects.
- Despite challenges, Hermes expects to maintain a dynamic growth trajectory, particularly in the U.S. and Asia, with a focus on local customer engagement.
- The transcript lacks specific figures on future tax rates and detailed projections for the Perfume division's recovery.

Bottom line: Hermes International's robust financial performance in 2025, driven by strong growth in key segments and strategic investments, positions the company well for future expansion. However, challenges in certain markets and segments warrant close monitoring as the company navigates a complex economic landscape.