Investing.com – Shares of luxury giant Hermes International (EPA:HRMS) rose on Friday after it reported strong H1 results. Revenue jumped 15% to €7.5 billion, fueled by demand across all geographical regions.
The French fashion brand credited its strong performance to the enduring appeal of its luxury goods, particularly in leather goods and accessories. The company also flagged the expansion of its retail network and the introduction of new product lines as growth catalysts.
Hermes' recurring operating income witnessed a 7% increase to €3.1 billion, translating to a remarkable 42% profit margin. Net profit soared to €2.4 billion, representing a 32% profit margin.
Jefferies has reiterated its “buy” rating on the luxury giant post its results. “We hope the c.20% recent reduction in RMS' sector relative premium can provide improved share price resilience,” they added.
The brokerage also flags Hermes’ strong brand equity, high levels of direct-to-consumer sales, and vertical integration as key factors supporting the “buy" rating.
This content was originally published on Investing.com
