Hermès fell back on the stock market this Thursday, against the trend of the Paris market, despite a recommendation upgrade from Goldman Sachs, which praised the stock's defensive qualities.
Shortly before 2:00 p.m., the luxury house's shares - which had opened the session with gains of 1.8% - were down by around 0.1%, in a CAC 40 index that was slightly up by 0.1%.
In a study devoted to the luxury sector, Goldman indicated that it had raised its recommendation on Hermès from 'sell' to 'neutral', with a price target raised from 1,514 to 2,060 euros.
In its note, the American investment bank highlights the defensive status of the group's business, estimating that 52% of customers remain loyal to the leather goods manufacturer's brand.
The New York-based firm nevertheless deplores its 'demanding' stock market valuation, pointing out that in terms of PER over a one-year horizon, the stock is still trading on the basis of a 67% premium to its comparables, compared with already 69% in 2022.
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Hermès International specializes in the design, manufacturing, and marketing of luxury products. Net sales break down by family of products as follows:
- leather and saddlery goods (41.3%): purses, luggage, small leather goods, planners, writing items, saddles, bridles, riding objects and clothing, etc.;
- clothes, shoes, and accessories (28.9%);
- silk and textile products (6.9%);
- clock and watchmaking articles (4.6%);
- perfumes and beauty products (3.7%);
- other (14.6%): mainly jewelry and home decoration products.
At the end of 2023, the group had a network of 294 stores worldwide.
Net sales are distributed geographically as follows: France (9.5%), Europe (13.6%), Japan (9.4%), Asia/Pacific (46.7%), Americas (18.6%) and other (2.2%).