FINWIRES · TerminalLIVE
FINWIRES

Hermès Maintains Revenue Outlook as Sales Rise in First Half; Shares Drop

By
Hermès Maintains Revenue Outlook as Sales Rise in First Half; Shares Drop

Hermès (RMS.PA) on Wednesday reported a 6% increase in first-half sales and maintained its medium-term revenue growth projections amid a challenging luxury market and ongoing geopolitical uncertainties.

Revenue for the six months ended June 30 rose to 8.16 billion euros, up 6% year over year at constant exchange rates and 2% on a reported basis. Attributable net income was broadly flat at 2.24 billion euros.

The Birkin bag maker delivered sales growth across all regions except the Middle East, where sales fell 4.2% to 330 million euros. Revenue in Asia, its largest market, rose 4% at constant exchange rates to 4.33 billion euros, while Europe posted a 6% increase to 1.92 billion euros.

By business segment, leather goods and saddlery, its largest division, posted a 9.8% increase in sales at constant exchange rates to 3.76 billion euros. Revenue from the ready-to-wear and accessories business rose 2% to 2.2 billion euros.

Hermès affirmed its medium-term guidance for revenue growth at constant exchange rates, "despite the economic, geopolitical and monetary uncertainties around the world."

"Hermès reported 2Q26/ 1H26 results before market open today, with Group OSG of +6.7% arriving in-line with consensus expectations. This represents a slight acceleration from 1Q26, driven primarily by France, Japan and the Middle East. EBIT margins came in at 41.1%, +70bps ahead of expectations, driven by higher GM%. FX was a -1.9pts drag this quarter. Currency fluctuations represented a [360 million euros] negative impact on revenue for 1H26, and [70 million euros] for 2Q26," Bernstein said in its quick-take note.

"2Q26 is a slight incremental improvement relative to 1Q26, but should be taken with no drama, given the de-rating suffered by Hermès in recent months," Bernstein added.

The company's shares were down over 7% in early morning trading in Paris.

Related Articles

Australia's Headline Inflation Eases in June, Supporting Case for Interest Rate Hold
US Markets

Australia's Headline Inflation Eases in June, Supporting Case for Interest Rate Hold

Australia's annual pace of inflation eased more than expected in June, potentially cooling near-term expectations for an interest rate hike, even as rising housing costs continued to weigh on the reading.The country's consumer price index rose 3.8% in the 12 months to June, down from a 4% rate logged in May, data from the Australian Bureau of Statistics showed on Wednesday.The closely watched annual trimmed mean inflation, which removes outliers on the low and high end of price movements, was unchanged from the previous month at 3.6% in June.Westpac expected a June CPI of 4.2% and a trimmed mean inflation reading of 3.7%. BofA Securities, which forecast headline CPI at 3.9%, recently said any downside surprises to its estimate should support the case for Australia's central bank to keep borrowing costs unchanged at an upcoming policy meeting in August.Housing was the largest contributor to annual inflation in June with a rise of 6.8%, reflecting elevated electricity costs that are over 22% higher than they were a year earlier following the end of government rebate programs."Annual inflation for new dwellings has reached its highest level in almost three years, at 5.8%," said Rachael McCririck, head of price statistics at the ABS. "This was driven by builders passing on higher material and labor costs."The data also showed a moderation in annual inflation for transport to an increase of just 0.1% in June from a 3.3% rise in May as automotive fuel prices declined for three straight months.

ASX 200
SK Hynix's Second-Quarter Profit Soars 13-Fold as Revenue Jumps 257% on AI Memory Boom
US Markets

SK Hynix's Second-Quarter Profit Soars 13-Fold as Revenue Jumps 257% on AI Memory Boom

SK Hynix (KRX:000660) reported a 1,241% year-over-year jump in attributable net profit for the second quarter, which it attributed to strong demand for high-value memory products amid strong AI demand.Attributable net profit surged 13-fold to 93.82 trillion won from 6.997 trillion won a year earlier, according to a Korea bourse filing early Wednesday.Net profit margin during the first half reached 118%.The South Korean memory chipmaker posted a 257% year-over-year jump in revenue to 79.3 trillion won from 22.2 trillion won, marking an all-time quarterly high for the company and pushing cumulative first-half revenue above 100 trillion won for the first time in its history, according to a press release.Cumulative revenue totaled 131.9 trillion won in the first half, up 231% from 39.9 trillion won a year prior."Driven by sustained demand growth from expanding AI infrastructure investments, high-performance products for AI servers led price increases, enabling the company to surpass its previous record set in the prior quarter," SK hynix said.The company expects the momentum in memory demand to persist as major tech companies ramp up their AI infrastructure spending, raising demand for its products.SK hynix supplies advanced memory chips to major global tech companies including Nvidia, Microsoft, Apple and Amazon Web Services, among others.The company said it began mass shipments of its new HBM4 product in the second quarter and will ramp up production in the second half of the year.SK Hynix added that it has finalized long-term agreements with around 10 customers, including key strategic partners, and is continuing further talks with major industry clients.In recent days, the company struck major investment deals to support the AI boom, including a memorandum of understanding with Nvidia last week to co-develop next-generation AI memory.The long-term partnership, amounting to $500 billion, was announced during South Korean President Lee Jae Myung's visit to San Francisco.Also last week, the company disclosed plans to build P&T7, its next-generation advanced packaging and testing facility, in South Korea's Cheongju, with a total investment of 7.09 trillion won.

KRX:000660
Hindustan Unilever's Fiscal First-Quarter Net Profit Down 3%; Revenue Jumps 10%
US Markets

Hindustan Unilever's Fiscal First-Quarter Net Profit Down 3%; Revenue Jumps 10%

Hindustan Unilever (BOM:500696, NSE:HINDUNILVR) reported a 3% year-over-year drop in attributable net profit in the fiscal first quarter ended June 30, despite posting higher revenue.Attributable net profit slipped to 26.7 billion rupees from 27.6 billion rupees a year earlier, according to an Indian bourse filing on Tuesday.Earnings per share fell to 11.38 yuan from 11.62 yuan.Net profit was weighed down by a one-off tax credit of 3.3 billion rupees in the year-ago period.The Indian consumer goods maker posted a 10.4% year-over-year jump in revenue to 171.5 billion rupees from 155.5 billion rupees.During the company's earnings call, CEO and Managing Director Priya Nair told analysts that the revenue growth of 10% was driven equally by volume and price."This represents our highest growth in 13 quarters. It reflects the result of decisive actions taken to transform our portfolio, sharpen execution, and strengthen market development," Nair said, according to a transcript of the call published by Investing.com.CFO Niranjan Gupta attributed the revenue jump to the 5% increase in underlying volume growth across product lines."Fabric wash delivered a broad-based double-digit volume-led growth. Bars and powders sustained their step-up, while liquids grew competitively and accelerated its double-digit growth trajectory," said Gupta.By segment, Home Care delivered a 14% jump in underlying sales, the fastest in three years, while underlying sales growth across the Beauty & Wellbeing, Personal Care, and Foods segments rose 12%, 4% and 7%, respectively.Looking ahead, Gupta said the company expects fiscal 2026-2027 to be "better" than fiscal 2025-2026."While commodities and currencies remain elevated, our approach remains consistent and disciplined, driving structural savings, taking calibrated pricing actions, and making judicious media investments," Gupta added.

BOM:500696NSE:HINDUNILVR