Hermes Should Benefit from High-End Customers but it Isn't Immune to Sector Struggles

Dow Jones09-14

1037 GMT - Hermes has showed superior resilience and structural ability to outperform the broader industry, AlphaValue analyst Jie Zhang writes in a note. The French luxury-goods company has exceptional brand desirability and exposure to high-end customers, the analyst says. The challenging economic context and price increases in recent years have pushed some of so-called aspirational consumers away from luxury, Zhang says. "This structural shift clearly benefits Hermes given its particularly affluent and loyal customer base, which supports our view that the group should continue to outperform the sector," the analyst writes. However, even Hermes cannot be completely immune to lower industry traffic and weaker demand for luxuries, she adds. The stock trades 1.2% higher.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment