Hermès International, a special value for Bank of America

Double-digit growth in an ailing luxury goods sector has not escaped the attention of Ashley Wallace, who is tracking Hermès International for Bank of America (BofA). Indeed, the analyst points out that Hermès is “the only luxury goods company to post double-digit revenue growth in the third quarter“with organic growth of 11%, contrasting with its peers, whose revenues fell by 5% over the period.

This performance was driven by the dynamic performance of the Leather Goods and Saddlery Division, which grew by 14%, while its other business lines grew by “only” 9%. Although the increase remains high, it is 120 basis points lower than the average growth over the last five years, showing that “Hermès not immune to wider luxury normalization“. This downside has led the analyst to lower his estimate of BNpa 2024 by 6%, while leaving his projections for 2025 and 2026 unchanged. Because the outperformance of the first…