Hermes H1 revenue slightly misses estimates on currency impact

Hermes International SCA

29/07/2026 07:09

Overview
France luxury goods maker's H1 revenue rose 6% at constant FX, slightly missing analyst expectations
Recurring operating profitability held at 41.0% of sales, with net income stable yr/yr
Adjusted free cash flow grew 18%, driven by strong operating cash flow and inventory management

Outlook
Hermès confirms an ambitious medium-term goal for revenue growth at constant exchange rates
Company says it continues development with confidence despite global economic and geopolitical uncertainties
Hermès pursues long-term strategy focused on creativity and maintaining control over know-how

Result Drivers
REGIONAL PERFORMANCE - Strong growth in Americas, Japan, and Europe excluding France, while Middle East declined but showed resilience
LEATHER GOODS AND SADDLE ACCELERATION - Leather Goods and Saddlery posted solid performance, with slightly higher growth in Q2, supported by new models and expanded production
CURRENCY IMPACT - Significant negative currency fluctuations weighed on reported revenue

Company press release: ID:nGNE1zPkJ3

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
Slight Miss*
EUR 8.16 bln
EUR 8.19 bln (6 Analysts)
H1 Net Income
 
EUR 2.24 bln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for Hermes International SCA is €1,997.50, about 17.8% above its July 28 closing price of €1,695.50
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads
July 27 - France's LVMH H1 revenue edges past estimates, aided by jewelry, Sephora strength 
July 28 - Gucci sales decline slows in boost for Kering's turnaround efforts
July 27 - As fashion stumbles, jewellery will help shape luxury's winners

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)