high level of activity across the region and by sustained sales in Singapore, Australia and Korea. It’s lower than the overall revenue growth of 23%, as other regions showed much faster growth, to be sure, but it’s not poor either. But unlike the other cases, for instance, LVMH, growth from this region has been a healthy 15% year-on-year for it. Asia ex-Japan, like its peers, is a big market for the company too, accounting for almost half of its revenue. ![]() One look at its solid financial results for the first half of 2022 (H1 2022) explains why. While other companies in the segment like Burberry ( OTCPK:BURBY ) and LVMH ( OTCPK:LVMUY ) have warned of the impact of the uncertain Chinese situation, Hermes appears less concerned about it. ![]() But there's a difference when it comes to Hermes. Sustained Asian demandĬhina is a huge market for luxury products, and its slowdown has affected these companies' performance to some extent recently. It concludes that there may indeed be a downside in the short term, but there are still plenty of reasons to buy it for the medium and long term. In this article, I explore why Hermes has such high market multiples in terms of its performance and peer comparisons. And by extension, it makes sense to believe that there’s a fair bit of downside to it in the near future, especially considering the current state of the stock markets. With a price-to-earnings (P/E) ratio of 41.7x, logically it would seem about right that its share price has tumbled by almost 30% year-to-date. Luxury goods producer Hermes ( OTCPK:HESAY), best known for its leather bags, looks like a richly valued company on the face of it.
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