RMS.PA - Hermès International Société en commandite par actions

Paris - Paris Delayed price. Currency in EUR
700.20
+2.40 (+0.34%)
At close: 5:35PM CEST
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Previous close697.80
Open700.00
Bid0.00 x 0
Ask0.00 x 0
Day's range693.00 - 703.00
52-week range516.00 - 725.60
Volume30,802
Avg. volume88,634
Market cap72.951B
Beta (5Y monthly)0.56
PE ratio (TTM)48.12
EPS (TTM)14.55
Earnings date26 Feb 2020
Forward dividend & yield4.55 (0.65%)
Ex-dividend date28 Apr 2020
1y target est498.46
  • Stock market volatility: Here's a large-cap worth a closer look
    Stockopedia

    Stock market volatility: Here's a large-cap worth a closer look

    Shares in Hermes International Sca (EPA:RMS) are currently trading at 691.8 but the question for investors is how much the market chaos of 2020 will impact on...

  • Four signs of a competitive moat at Hermes International Sca (EPA:RMS)
    Stockopedia

    Four signs of a competitive moat at Hermes International Sca (EPA:RMS)

    Given that widespread uncertainty in the stock market is likely to endure for the rest of 2020 and beyond, it pays to know that you're investing in high-qualit...

  • Globe Newswire

    Hermès International : Shares and voting rights as of 30th April 2020

    HERMES INTERNATIONAL Société en Commandite par Actions with a capital of 53 840 400,12 € euros, Incorporated under the n° 572 076 396 RCS PARIS Whose registered office is situated 24, rue du Faubourg Saint-Honoré 75008 PARIS FRANCEInformation relating to the total number of voting rights and of shares envisaged by the article L 233-8 of the French “Code de Commerce” and Article 223-16 of the General Regulations of French “Autorité des Marchés Financiers “(AMF)DateTotal number of shares Total number of theoretical voting rights (including treasury stock)Total number of effective voting rights (exercisable at shareholders’ meetings)Publications 30 April 2020105 569 412177 371 899175 988 01212 May 2020 31 March 2020105 569 412177 385 889176 004 13114 April 2020 29 February 2020105 569 412178 148 779176 773 1759 March 2020 31 January 2020105 569 412178 118 639176 749 29114 February 2020 31 December 2019105 569 412178 108 521176 746 89214 January 2020 30 November 2019105 569 412178 063 668176 708 24712 December 2019 31 October 2019105 569 412178 065 620176 716 21414 Novembre 2019 30 September 2019105 569 412178 068 436176 725 23314 October 2019 31 August 2019105 569 412178 070 314 176 731 79913 September 2019 31 July 2019105 569 412178 071 327176 733 0267 August 2019 30 June 2019105 569 412178 073 631176 742 5069 July 2019 31 May 2019105 569 412178 186 716176 864 00814 June 2019 30 April 2019105 569 412178 231 861176 904 62613 May 2019 31 March 2019105 569 412178 235 213176 907 63211 April 2019 28 February 2019105 569 412178 236 297176 915 201814 March 2019 31 January 2019105 569 412178 238 767176 920 8267 February 2019 31 December 2018105 569 412177 354 174176 036 79510 January 2019 30 November 2018105 569 412175 147 721173 830 0587 December 2018 31 October 2018105 569 412175 147 522173 832 3049 November 2018 30 September 2018105 569 412175 138 169173 830 75612 October 2018 31 August 2018105 569 412175 138 358173 833 83414 September 2018 31 July 2018105 569 412175 128 042173 825 0329 August 2018 30 June 2018105 569 412175 132 569173 831 35312 July 2018 31 May 2018105 569 412174 925 618173 652 27115 June 2018 30 April 2018105 569 412174 923 889173 508 05115 May 2018 31 March 2018105 569 412174 946 378173 529 10112 April 2018 28 February 2018105 569 412174 946 564173 529 66415 March 2018 31 January 2018105 569 412174 907 134173 489 81415 February 2018 31 December 2017105 569 412174 840 779173 425 15815 January 2018 30 November 2017105 569 412174 128 500172 714 09415 December 2017 31 October 2017105 569 412174 126 106172 838 06414 November 2017 30 September 2017105 569 412174 092 529173 004 09913 October 2017 31 August 2017105 569 412174 099 833173 093 44012 September 2017 31 July 2017105 569 412174 099 902173 090 79111 August 2017 30 June 2017105 569 412174 063 847173 056 05813 July 2017 31 May 2017105 569 412174 060 847173 056 20015 June 2017 30 April 2017105 569 412174 056 256172 958 98615 May 2017 31 March 2017105 569 412174 057 356172 966 85113 April 2017 28 February 2017105 569 412174 062 531172 972 82610 March 2017 31 January 2017105 569 412174 063 182172 975 90814 February 2017 31 December 2016105 569 412174 057 477172 977 90213 January 2017 30 November 2016105 569 412174 057 875172 984 23814 December 2016 31 October 2016105 569 412174 056 756172 997 48215 November 2016 30 September 2016105 569 412174 056 837173 046 93514 October 2016 31 August 2016105 569 412174 057 149173 082 59213 September 2016 31 July 2016105 569 412174 057 038173 107 36312 August 2016 30 June 2016105 569 412174 052 961173 126 63612 July 2016 31 May 2016105 569 412174 053 923173 185 26914 June 2016 30 April 2016105 569 412173 991 105172 807 98912 May 2016 Attachment * Information relating to the total number of voting rights and of shares

  • Reuters - UK Focus

    Global luxury gloom to deepen despite easing lockdowns -Bain

    Global sales of luxury goods are expected to slump by 50% to 60% in the second quarter even as some countries begin to ease coronavirus lockdowns and despite signs of recovery in the Chinese market, consultancy Bain said on Thursday. The coronavirus crisis, which first hit China late last year before spreading to Europe and the United States, has kept shoppers at home and forced retailers to shut stores, resulting in a crushing halt to a decade of spectacular growth for high-end brands. With the April to June decline coming on top of an estimated 25% drop in the first three months of the year, Bain expects global sales of luxury handbags, clothing and cosmetics to shrink by between 20% and 35% in 2020, against a previous estimate for a 15% to 35% decline.

  • Coronavirus Will Change Not Just How, But What, We Buy
    Bloomberg

    Coronavirus Will Change Not Just How, But What, We Buy

    (Bloomberg Opinion) -- As the coronavirus pandemic continues, Bloomberg Opinion will be running a series of features by our columnists that consider the long-term consequences of the crisis. This column is part of a package envisioning a new consumer economy. For more, see Mary Duenwald on technology changing how we shop and on how consumers respond to crises, and Tara Lachapelle on fixing the broken business model of streaming.During the coronavirus lockdown, a particular meme has been doing the rounds on Instagram and Twitter.It shows a woman in a pink ballgown, complete with tulle train billowing out behind her. She’s not reaching for a cocktail or standing on a glitzy red carpet. She is in a supermarket produce section, clutching a bunch of carrots in one hand and reaching for a red pepper with the other.The image encapsulates how some consumers feel: After being cooped up at home for months, they can’t wait to finally have an opportunity to get all dressed up again.But for many others, what they wear, how they shop and which products they buy will be forever altered by the pandemic. The Covid-19 outbreak, which has tragically infected more than three million people and killed more than 219,000, has also struck at the heart of consumerism around the world.With a quarter of a million stores closed across the U.S. at the height of the lockdown, according to research group GlobalData, the ability to purchase, long a symbol of affluence and status, is in peril. Never has materialism seemed so emasculated.First of all, there’s the immediate economic impact. With millions of workers temporarily furloughed and laid off, they will be reining in their spending. If these become permanent job losses, the effect will be even more severe. Conspicuous consumption is going to look ugly for a while.And habits learned in lean times often stick around. Witness the acceptance of discount retailers, such as the German no-frills supermarkets Aldi and Lidl. The cash-strapped middle classes in the U.S. and Europe discovered the delights of their cheap wine and value toilet paper during the 2007-2008 global financial crisis, and the budget grocers have prospered ever since.Then there’s the slow and incremental process of coming out of lockdown. Even individuals who have kept their jobs and full salaries may make longer-term changes to their spending, as it will be some time before they feel comfortable visiting crowded malls and dining out in restaurants again.With social distancing potentially staying in place for up to two years, according to KPMG, this could mean far-reaching consequences for the operation and physical design of stores. For example, stores might have to require appointments for visits, offer more check-out free locations and even rethink facilities such as changing rooms. Who wants to pick up discarded garments when the world is emerging from a pandemic?So far, there are some encouraging signs coming from China, where consumers emerging from lockdown seem to be embracing shopping once more. PwC estimates that as of early April sales at non-food retailers were at 50-80% of their pre-crisis levels. In luxury, the recovery has been even more extreme: A Hermes International flagship store took in $2.7 million when it reopened in Guangzhou in mid-April, believed to be a record daily haul for a boutique in China, according to fashion trade bible WWD. LVMH said some of its big brands on the mainland had seen 50% increases in sales in April compared to the previous year.This phenomenon is being called “revenge spending,” a phrase first coined to capture the desire for consumer goods unleashed in China during the 1980s, after the poverty and chaos of the Cultural Revolution. At the moment, Chinese shoppers are flush with cash after cancelled travel and events. However, this demand may not last, especially as the number of people allowed in boutiques at any one time is limited and initiatives such as temperature testing have been put in place.The bigger impact of this crisis, then, may be a shift in what consumers choose to buy.*****The outbreak has hit something we largely take for granted: our health. While more government resources are directed to healthcare — something that will have implications for taxes and disposable incomes — there will also likely be a reassessment of personal priorities. That could mean spending even more of one’s income on private health insurance or buying products that help boost immunity.Wellness had already become one of the few rich seams for consumer groups, giving rise to Beyond Meat Inc.’s plant protein burgers, South Korean gold-laced face masks and vitamin infusions sold in upmarket department stores. Despite criticisms that so-called self-care is the expensive preserve of millennial hipsters, society’s desire to ensure it doesn’t get sick will likely turbo-charge demand for these products.The pandemic has also fostered a renewed sense of community. This plus the inability to travel very far could encourage spending in more local shops and on brands with strong regional identities, as opposed to the big retailers who may have had empty shelves or struggled to deliver online orders during the crisis. Underlining the new mood, one British retailer with a long history of trading on the high street told me they’ve even noticed more customers saying thank you to staff in their daily interactions.  One sector that is poised to suffer tremendously going forward is clothing. Most consumers have effectively skipped a fashion season, being unwilling or unable to buy apparel for spring and summer. Conferences, parties and weddings have been cancelled, so we’ve simply needed fewer new clothes. There may be some pent-up demand when consumers rediscover their freedom, especially if retailers are having to cut prices to clear stock. But for many, essential grooming such as getting a haircut or a fresh set of eyelash extensions will take precedence over buying a new outfit.Some consumers who bought fewer clothes during this period may continue to reduce their wardrobe spend. The size of the average U.S. closet has already shrunk over the past three years, according to GlobalData. If you combine the pandemic and concerns about fashion’s environmental cost, it’s not hard to see how men and women may buy even less apparel in the future.During the prolonged shutdown, there will be some retailers that consumers simply don’t miss and therefore may not return to. U.S. department stores, such as Macy’s Inc. and J.C. Penney, already grappling with the shift toward online buying and with few compelling products, may well fall into this category. J.C. Penney skipped a $12 million interest payment and is evaluating alternatives including a potential bankruptcy filing to restructure its finances, Reuters reported recently. Macy’s, meanwhile, is exploring ways to use its real estate to secure fresh cash. Indeed, some storied names may shut their doors forever, or decide that the time is right to close a number of locations.  How brands behave when the chips are down will also determine how customers react to them when they come out of lockdown.Some have acted particularly well, adapting their offerings to meet changing needs. For example, luxury goods groups, including LVMH, Kering SA, Prada SpA, Burberry Group Plc and Ralph Lauren Corp, repurposed their facilities to produce protective equipment such as hand sanitizer, masks and gowns. Brands like Nike and Lululemon have engaged shoppers with online workouts; while British clothing and food retailer Marks & Spencer Group Plc. has offered meditation sessions. This nimbleness won’t be forgotten.*****Whether out of necessity or choice, shoppers will want goods that are appealing — and, after a health scare, make them feel good — but are priced at a level they believe is appropriate. This doesn’t always mean the cheapest, but it does mean a perceived sense of good value for money. That’s at odds with the approach of higher initial prices followed by steep markdowns that has become a hallmark of much U.S. retail. But as customers become more discerning, store groups will need to distinguish themselves with more than just discounts.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Globe Newswire

    Hermès International: 1st quarter 2020 sales

    HERMÈSQuarterly information report as at the end of March 2020Resilience of sales at the end of March (- 6.5% at current exchanges rates and - 7.7% at constant exchange rates) despite the growing impact of the Covid-19 epidemicParis, 23 April 2020After a highly dynamic month in January across all the geographical areas worldwide, the beginning of 2020 is marked by a health crisis of an unprecedented scale, duration and geographic extent. After hitting China, it spread and gained in intensity in Europe, America and Asia at the end of the first quarter, leading to the temporary closure of the stores in compliance with the various governmental directives, and the stoppage of the production sites in France and Europe to protect all the employees. Facing this health crisis, Hermès demonstrates support and responsibility.The Group's consolidated revenue amounted to €1,506 million in the first quarter 2020, down by - 6.5% at current exchanges rates and - 7.7% at constant exchange rates.Axel Dumas, Executive Chairman of Hermès, said: "Since the beginning of the Covid-19 crisis, protecting the health of our employees and partners has been our priority, and has prompted us to close many stores and, temporarily, certain sites. I would like to thank all the employees who have engaged in solidarity initiatives, and all those who are enabling operations to gradually resume. The solidity of our craftsmanship model, the appeal of our objects, and the efforts made by all the Hermès teams are key assets that will help us confidently overcome the major uncertainties this first period has brought."Sales by geographical area at the end of March (at constant exchange rates unless otherwise indicated)In the first quarter 2020, all the geographical areas were impacted by the health crisis and stores’ closure. The revenue generated in the group’s stores was down by - 7% at constant exchange rates. * In Asia excluding Japan (- 9%), Mainland China gradually closed 11 stores as of the end of January, while all stores closed in Macao and opening hours were restricted in Hong Kong. Stores have been progressively re-opened in March in Mainland China, and those in Hong Kong and Macao regained traffic even though reduced due to border control measures. Several countries in the area have experienced a second wave of store closures, further to governmental measures, notably in Singapore, Australia and Thailand since early April. Hermès is continuing to roll out the new website in Hong Kong and Macao. In Mainland China, all of the stores were able to reopen and activity is increasing again. The Guangzhou store reopened after expansion in early April. * Japan (+ 1%) has displayed remarkable resilience, particularly thanks to the loyalty of local customers. Most stores have been gradually closed since the end of March, following the Japanese government’s announcement of a state of emergency for an unspecified period.               * In America (- 6%), all the stores have been closed and all e-commerce has been stopped in the United States since 20 March, similar to other countries of the region.              * Europe excluding France (- 11%) and France (-        9%) are strongly impacted, with the network closed mid-March. Sales by business line at the end of March (at constant exchange rates unless otherwise indicated)The Leather Goods and Saddlery business line records a decline (- 6%) as a result of the closure of our stores in the various geographical areas. As of 17 March, Hermès announced the closure of its production sites in France to protect employees, except for the Hermès Perfumes site in Vaudreuil which began producing hydro-alcoholic hand sanitizer, on a voluntary basis. Investments in production capacity have been maintained, with the continuation of the Guyenne et Montereau workshops projects, and the announcements of new sites in Louviers and Les Ardennes region. Hermès continues to strengthen its local integration in France.The Group's other business lines have all been strongly affected by the closures of our stores in all the geographical areas, after benefiting from strong momentum in January thanks to the Chinese New Year. The Ready-to-Wear and Accessories (- 11%) and Silk and Textiles (- 20%) business lines have been more severely penalised by the decline in sales prior to the store closures. Despite the very successful launch of the Beauty line beginning of February, Perfumes are down (- 3%) as are Watches (- 7%). The Other Hermès business lines (+ 4%) have fared particularly well thanks to Jewellery.Covid-19 Crisis – Support and responsibility at HermèsAs announced on 30 March, Hermès' economic and financial solidity enables the Group to weather this unprecedented health crisis. Ever true to the Group's humanistic culture and our commitments as a responsible employer, and thanks to an adequate cash position, Hermès has maintained the basic salary of the 15,500 employees in France and the rest of the world without having recourse to the exceptional governmental subsidies provided in various countries, particularly in France, where the Group has waived the benefit of the support scheme for partial employment.Hermès has donated €20 million to AP-HP (Assistance Publique - Hôpitaux de Paris). This contribution bolsters the donation of over 30 tons of hand sanitizer produced by the Perfumes site in Vaudreuil, and that of more than 31,000 masks from the company's different entities. It has been completed by support for local health services via the Hermès subsidiaries around the world.In this context, following a proposal from Executive Management, the Supervisory Board has decided to alter the proposed ordinary dividend distribution to be submitted to the General Meeting of Shareholders on 24 April 2020, reducing it from €5.00 to €4.55 per share, i.e. an amount identical to the sum paid in 2019.Finally, the executive managers have decided to waive the increase in their fixed compensation paid in 2020 and their variable compensation awarded in 2020 for 2019, and will therefore receive a total amount this year identical to the amount they received in 2019.Highlights At the end of March 2020, currency fluctuations represented a positive impact of €20 million on revenue. During the first quarter, Hermès International redeemed 18,209 shares for €12 million, excluding transactions completed within the framework of the liquidity contract.OutlookAt the date of publishing this release, only the stores in Greater China and Korea are open and business is greatly reduced in Japan. Developments in the pandemic and the measures decided by governments do not enable us to anticipate the dates for re-opening stores. Consequently, sales in the second quarter will be significantly impacted by the closures of a significant part of the network. For 2020, the impacts of the Covid-19 epidemic are currently difficult to assess, as the scale, duration and geographic extent of the crisis evolve every day. The craftsmanship model implemented mostly in France, the balanced distribution network and the local customer base are all factors that contribute to the company's resilience. The Group remains highly involved and active: the situation is evaluated regularly and measures are adapted accordingly. In all affected countries, the key concern is the health of all the employees and their families within the framework of the measures taken by medical and public authorities. Despite this unprecedented economic crisis, Hermès has maintained its strategic investments, both in production capacities and the distribution network, in order to prepare to resume business in the best possible conditions, while controlling costs. We have been partially and gradually resuming operations in the production and logistics sites since 14 April, in full compliance with safety rules and by applying strict measures to protect the employees present, in consultation with the employees’ representative bodies. The group is confident in its ability to mobilise all its employees and to reconnect with its customers.Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, maintaining control over know-how and singular communication.With pride in its artisanal model, in 2020 Hermès pays tribute to the extraordinary tool that is the human hand, as well as to the ingenuity that drives every one of the house’s craftsmen and women. For it is this combination that characterises the innovative spirit of Hermès, its commitment to Innovation in the making.In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the Group confirms an ambitious goal for revenue growth at constant exchange rates.  The press release on Revenue at the end of March 2020 is available on the Group's website: https://finance.hermes.comUpcoming events: * 24 April 2020: General Meeting of Shareholders in camera, it will be broadcast on the Company’s website, the information is available on the website https://finance.hermes.com/en/Shareholder-s-Guide/General-Meetings * 30 July 2020: publication of H1 2020 Results * 22 October 2020: publication of Q3 2020 Revenue REVENUE BY GEOGRAPHICAL AREA 1  1st quarterEvolutions In millions of Euros  20202019PublishedAt constant exchange rates France 168.9184.8(8.6)%(8.6)% Europe (excl. France) 234.7261.6(10.3)%(11.0)% Total Europe 403.5446.4(9.6)%(10.0)% Japan 213.6204.24.6%0.6% Asia-Pacific (excl. Japan) 600.9655.9(8.4)%(9.0)% Total Asia 814.5860.1(5.3)%(6.7)% Americas 258.5269.7(4.2)%(6.3)% Other 29.033.5(13.4)%(13.5)% TOTAL 1,505.51,609.7(6.5)%(7.7)% 1 Sales by destination.REVENUE BY SECTOR  1st quarterEvolutions In millions of Euros  20202019PublishedAt constant exchange rates Leather Goods and Saddlery 1 771.1808.2(4.6)%(6.0)% Ready-to-Wear and Accessories 2 325.8360.2(9.6)%(10.6)% Silk and Textiles 115.0140.4(18.1)%(19.2)% Other Hermès sectors 3 122.9116.75.3%3.9% Perfumes 82.184.6(3.0)%(3.3)% Watches 41.043.4(5.5)%(6.6)% Other products 4 47.756.2(15.1)%(15.8)% TOTAL 1,505.51,609.7(6.5)%(7.7)% 1 The “Leather Goods and Saddlery” business line includes bags, riding, diaries and small leather goods. 2 The “Ready-to-wear and Accessories” business line includes Hermès Ready-to-wear for men and women, belts, costume jewellery, gloves, hats and shoes. 3 The “Other Hermès business lines” include Jewellery and Hermès home products (Art of Living and Hermès Tableware). 4 The “Other products” include the production activities carried out on behalf of non-group brands (textile printing, tanning…), as well as the John Lobb, Saint-Louis, Puiforcat and Shang Xia products. REMINDER – 2019 KEY FIGURES    In millions of euros20192018 restated * Revenue 6,883 5,966 Growth at current exchange rates vs. n-115.4%7.5% Growth at constant exchange rates vs. n-1 112.4%10.4%     Recurring operating income 22,339 2,075 As a % of revenue 34.0%34.8%     Operating income 2,339 2,128 As a % of revenue 34.0%35.7%     Net profit – Group share 1,528 1,405 As a % of revenue22.2%23.6%     Operating cash flows2,063 1,863 Investments (excluding financial investments)478 312 Adjusted free cash flow 31,4061,447         Equity – Group share 6,568 5,470 IFRS net cash position 44,372 3,465 Restated net cash position 54,562 3,615     Workforce (number of employees)15,417 14,284 * 2018 restatements relate to the application of the IFRS 16 - Leases standard on a retrospective basis(1) Growth at constant exchange rates is calculated by applying the average exchange rates of the previous period to the current period's revenue, for each currency.(2) Recurring operating income is one of the main performance indicators monitored by the group's General Management. It corresponds to the operating income excluding non-recurring items having a significant impact likely to affect the understanding of the group's economic performance.(3) Adjusted free cash flow is the sum of cash flows related to operating activities, less operating investments and the repayment of lease liabilities recognised in accordance with IFRS 16 (consolidated statement of cash flows).(4) The IFRS net cash position includes cash and cash equivalents, less bank overdrafts and short-term debts. It doesn’t include liabilities related to the application of IFRS 16. (5)     The restated net cash position includes short-term investments that do not meet IFRS cash equivalents criteria mainly because their original maturity exceeds three months. The press release and the presentation of the 2019 Results are available on the Group's website: https://finance.hermes.com.At the meeting of the Supervisory Board on 25 February 2020, Executive Management presented the audited financial statements for 2019. The complete consolidated financial statements are available at the following address https://finance.hermes.com and on the AMF website www.amf-france.org.Attachment * CP CA Q12020 VA - VDEF

  • Revenge Is a Dish That's Off the China Menu
    Bloomberg

    Revenge Is a Dish That's Off the China Menu

    (Bloomberg Opinion) -- China’s high-end consumers aren’t going on a “revenge spending” spree. They’re just bringing their love affair with luxury brands home. A surge in China sales for stores operated by the likes of LVMH and Hermes International has spurred optimism that consumer demand will snap back as the lockdowns lift. The reports offered a glimmer of light amid data showing that China’s retail sales plunged 15.8% in March from a year earlier.Unfortunately, it looks as though Chinese consumers are simply buying their alligator handbags and diamond watches at home instead of in Hong Kong, Paris or Milan. While travel restrictions aimed at halting the pandemic are partly responsible, the trend was already in place before the virus appeared — driven by a change in tax rates.Beijing has been encouraging the nation’s shoppers, who accounted for around a third of global luxury sales last year, to spend more money at home. The gap between prices of upscale goods onshore and overseas shrank to 15% last year from about 30% three years ago after a series of cuts to China’s luxury sales taxes. Protests last year in Hong Kong, a favorite pit-stop for buyers of high-end products, also helped to spur domestic sales. The migration still has a long way to run: Only 30% of China’s luxury purchases took place at home last year.All this suggests that this spurt in luxury sales is unlikely to be sustained at these levels. Chinese purchases won’t rescue the sector globally, as my colleague Andrea Felsted has noted. More than 90% of sales take place in bricks-and-mortar stores. That’s understandable: If you’re going to spend thousands of dollars on a handcrafted item, you’ll want to touch it, rather than just clicking a button on an e-commerce site. Besides, Chinese shoppers are still worried about their jobs and the prospect of salary cuts. Most people don’t plan to increase spending on high-end goods, according to a Morgan Stanley survey that suggests the uptick reported by LVMH, Hermes and L’Oreal SA may quickly fade. Of 2,000 consumers surveyed, 29% said they will spend less on luxury goods next month versus this month, while 40% said they would spend more on groceries. The survey covered city-dwellers aged 18 to 49 in 19 provinces.The luxury sales bounce will taper off into a gradual though sustainable rise, according to Lucia Li, a Beijing-based partner at Bain & Co. The consultancy divided Chinese consumer products into six categories ranked from those that will gain a permanent boost from the coronavirus, such as digital healthcare, to those that will face enduring headwinds such as traditional retailers. It placed luxury goods in the middle bracket, along with alcohol and household appliances.China will need to look elsewhere for its economic revival. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • For Luxury Brands, It’s Too Early to Pop Open the Champagne
    Bloomberg

    For Luxury Brands, It’s Too Early to Pop Open the Champagne

    (Bloomberg Opinion) -- A flagship Hermes International store in Guangzhou reportedly took in $2.7 million on its first day reopening after the coronavirus lockdown, the biggest daily haul for a boutique in China, according to fashion trade bible WWD.The French luxury brand best known for its Kelly and Birkin bags may not be alone in enjoying the phenomenon that has been referred to as “revenge spending.” The term, coined to describe pent-up consumer demand in the 1980s after the poverty and chaos of the Cultural Revolution, is now being applied to splurging by Chinese shoppers as the virus recedes.LVMH, hit by a 17% decline in first-quarter sales excluding currency movements and acquisitions, said late Thursday that Chinese consumers were once again enthusiastically embracing its brands, including Louis Vuitton and Christian Dior. And my Bloomberg News colleagues reported that sales at LVMH stores on the mainland were up 50% year-on-year in the past three weeks.Cosmetics maker L’Oreal SA also pointed to a recovery in the region’s demand for beauty products. Of course, that may be a function of what’s called the “lipstick” index, where when times are tough consumers tend to buy smaller treats rather than more expensive items. But the signs do bode well for demand from Chinese consumers, who could account for 44% of luxury spending this year, according to analysts at Jefferies.Still, none of this may be enough to rescue second-quarter trading, nor the full year.First of all, there’s no guarantee that the rebound will be sustained. What’s more, during normal times the Chinese make the majority of their vanity purchases when they travel abroad. In this new post-coronavirus era, there has been an initial trend toward more domestic spending, and that could accelerate further. But bigger impulse purchases are still more likely to happen when people can finally visit cities such as Paris or Milan. With airplanes still grounded in many places and borders closed, travel is set to be severely constrained for some time, and that will be a drag on industry growth.Meanwhile, stores in Europe and the U.S. remain closed. When they finally reopen, brands will find it very difficult to compensate for fewer Chinese visitors. Massive job losses and all of the other economic hardships brought by lockdowns means they won’t be able to count on local shoppers to make up the difference. Consultants Bain & Co. estimate that global personal luxury goods sales could fall as much as 35% this year, with a mid-point scenario at 22-25%. This would be the worst decline in modern luxury industry history.Despite the inevitable industry downturn this year — one that will possibly stretch into 2021 — LVMH looks to be one of the best-placed luxury groups.With revenue of 52 billion euros ($56 billion) in 2019, more than three times that of its nearest rivals, LVMH has significant scale and a strong stable of brands, led by Louis Vuitton and Dior but also including Fendi and Celine in fashion and the Sephora beauty stores. The 10% decline in fashion and leather goods sales, excluding currency movements and acquisitions, is better than might have been expected. The company run by billionaire Bernard Arnault also has a diverse portfolio, both geographically and in terms of products, which include spirits and beauty lines too. This gives it scope to cut costs, but also, crucially, to invest when competitors may be weakened.There are some worries. For example, the $16 billion acquisition of American diamond-jewelry icon Tiffany & Co. will now be more of a challenge. (LVMH indicated on Thursday that it would still go ahead with the deal.) And it also has exposure to travel retail through major duty-free chain DFS, which may be depressed for some time.So LVMH won’t be immune from the continued disruption to luxury goods sales. But as it demonstrated in the first quarter it should be more than able to hold its own.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Globe Newswire

    Hermès International : Shares and voting rights as of 31st March 2020

    HERMES INTERNATIONAL Société en Commandite par Actions with a capital of 53 840 400,12 € euros, Incorporated under the n° 572 076 396 RCS PARIS Whose registered office is situated 24, rue du Faubourg Saint-Honoré 75008 PARIS FRANCEInformation relating to the total number of voting rights and of shares envisaged by the article L 233-8 of the French “Code de Commerce” and Article 223-16 of the General Regulations of French “Autorité des Marchés Financiers “(AMF)DateTotal number of shares Total number of theoretical voting rights (including treasury stock)Total number of effective voting rights (exercisable at shareholders’ meetings)Publications 31 March 2020105 569 412177 385 889176 004 13114 April 2020 29 February 2020105 569 412178 148 779176 773 1759 March 2020 31 January 2020105 569 412178 118 639176 749 29114 February 2020 31 December 2019105 569 412178 108 521176 746 89214 January 2020 30 November 2019105 569 412178 063 668176 708 24712 December 2019 31 October 2019105 569 412178 065 620176 716 21414 Novembre 2019 30 September 2019105 569 412178 068 436176 725 23314 October 2019 31 August 2019105 569 412178 070 314 176 731 79913 September 2019 31 July 2019105 569 412178 071 327176 733 0267 August 2019 30 June 2019105 569 412178 073 631176 742 5069 July 2019 31 May 2019105 569 412178 186 716176 864 00814 June 2019 30 April 2019105 569 412178 231 861176 904 62613 May 2019 31 March 2019105 569 412178 235 213176 907 63211 April 2019 28 February 2019105 569 412178 236 297176 915 201814 March 2019 31 January 2019105 569 412178 238 767176 920 8267 February 2019 31 December 2018105 569 412177 354 174176 036 79510 January 2019 30 November 2018105 569 412175 147 721173 830 0587 December 2018 31 October 2018105 569 412175 147 522173 832 3049 November 2018 30 September 2018105 569 412175 138 169173 830 75612 October 2018 31 August 2018105 569 412175 138 358173 833 83414 September 2018 31 July 2018105 569 412175 128 042173 825 0329 August 2018 30 June 2018105 569 412175 132 569173 831 35312 July 2018 31 May 2018105 569 412174 925 618173 652 27115 June 2018 30 April 2018105 569 412174 923 889173 508 05115 May 2018 31 March 2018105 569 412174 946 378173 529 10112 April 2018 28 February 2018105 569 412174 946 564173 529 66415 March 2018 31 January 2018105 569 412174 907 134173 489 81415 February 2018 31 December 2017105 569 412174 840 779173 425 15815 January 2018 30 November 2017105 569 412174 128 500172 714 09415 December 2017 31 October 2017105 569 412174 126 106172 838 06414 November 2017 30 September 2017105 569 412174 092 529173 004 09913 October 2017 31 August 2017105 569 412174 099 833173 093 44012 September 2017 31 July 2017105 569 412174 099 902173 090 79111 August 2017 30 June 2017105 569 412174 063 847173 056 05813 July 2017 31 May 2017105 569 412174 060 847173 056 20015 June 2017 30 April 2017105 569 412174 056 256172 958 98615 May 2017 31 March 2017105 569 412174 057 356172 966 85113 April 2017 28 February 2017105 569 412174 062 531172 972 82610 March 2017 31 January 2017105 569 412174 063 182172 975 90814 February 2017 31 December 2016105 569 412174 057 477172 977 90213 January 2017 30 November 2016105 569 412174 057 875172 984 23814 December 2016 31 October 2016105 569 412174 056 756172 997 48215 November 2016 30 September 2016105 569 412174 056 837173 046 93514 October 2016 31 August 2016105 569 412174 057 149173 082 59213 September 2016 31 July 2016105 569 412174 057 038173 107 36312 August 2016 30 June 2016105 569 412174 052 961173 126 63612 July 2016 31 May 2016105 569 412174 053 923173 185 26914 June 2016 30 April 2016105 569 412173 991 105172 807 98912 May 2016 31 March 2016105 569 412173 977 667172 796 44014 April 2016 Attachment * Information relating to the total number of voting rights and of shares

  • Hermès International Société en commandite par actions (EPA:RMS) Shareholders Have Enjoyed A 89% Share Price Gain
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  • Reuters - UK Focus

    LIVE MARKETS-New year rally succumbs to virus scare

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    LIVE MARKETS-Buying the dip in mining?

    * European shares down sharply on China virus worries * Miners, luxury, airlines lead sectoral fallers * Italian banks outperform sector as regional vote brings relief * STOXX down 2%, set for worst day since October * Volatility surges Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves.

  • Reuters - UK Focus

    LIVE MARKETS-Coronavirus outbreak fuels volatility surge

    * European shares down sharply on China virus worries * Miners, luxury, airlines lead sectoral fallers * Italian banks outperform sector as regional vote brings relief * STOXX down 2.1%, set for worst day since October * Volatility surges Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Reach her on Messenger to share your thoughts on market moves: joice.alves.thomsonreuters.com@reuters.net CORONAVIRUS OUTBREAK FUELS VOLATILITY SURGE (1134 GMT) Mounting fears about the coronavirus outbreak in China have fuelled a rare volatility surge across European stock markets.

  • Reuters - UK Focus

    LIVE MARKETS-Bleeding from virus: 586 out of 600 stocks in red

    * European shares down sharply on China virus worries * Miners, luxury, airlines lead sectoral fallers * Italian banks outperform sector as regional vote brings relief * STOXX down 2.1%, set for worst day since October Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Airlines, hotels, cars, luxury goods, oil, industrial stocks, you name it, are all among fallers. Here's a snapshot of the intensity of the sell-off: (Thyagaraju Adinarayan) ***** LUXURY UPGRADES IN THE TIME OF CORNAVIRUS (1048 GMT) China is by far the No. 1 growth market for European luxury and the space is understandably hammered this morning on the mounting worries over the impact of the spreading Cornaviris.

  • Reuters - UK Focus

    LIVE MARKETS-There goes the FTSE post-election buzz

    * European shares down sharply on China virus worries * Miners, luxury, airlines lead sectoral fallers * Italian banks rise as regional vote brings relief * STOXX down as much as 2%, set for worst day since October Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Reach her on Messenger to share your thoughts on market moves: joice.alves.thomsonreuters.com@reuters.net THERE GOES THE FTSE POST-ELECTION BUZZ (1038 GMT) Among all the big casualties on the trading floor this morning is the post-election buzz which turbo-charged UK equities after Boris Johnson's landslide win in December.

  • Reuters - UK Focus

    LIVE MARKETS-Luxury: China virus stings hard, $50 bln wiped off

    * European shares open down sharply on China virus worries * Miners, luxury, airlines lead sectoral fallers * Italian banks rise as regional vote brings relief Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Reach her on Messenger to share your thoughts on market moves: joice.alves.thomsonreuters.com@reuters.net LUXURY: CHINA VIRUS STINGS HARD, $50 BLN WIPED OFF (0925 GMT) It's not surprising to see more than 95% of the STOXX 600 constituents in red this morning as China's spreading virus outbreak is taking a toll on stocks ranging from miners to perfume makers. The jolt is immediately felt in the top luxury names in Europe with nearly $50 billion wiped off from their market value since the outbreak.

  • Can Hermès International Société en commandite par actions's (EPA:RMS) ROE Continue To Surpass The Industry Average?
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  • Reuters - UK Focus

    UPDATE 1-Trump cancels his NATO summit news conference

    U.S. President Donald Trump cancelled his scheduled news conference at the end of the NATO summit in Britain on Wednesday, saying he had briefed the media many times during his two-day trip. "When today's meetings are over, I will be heading back to Washington," Trump said in a tweet. Trump said he would hold final bilateral meetings with Denmark and Italy at the golf resort near London where the military alliance has gathered for its 70th anniversary before returning to the United States.

  • Reuters - UK Focus

    Turkey drops block on defence plan for Baltics - NATO chief

    NATO Secretary-General Jens Stoltenberg said on Wednesday that Turkey had dropped its block on a plan to bolster the defences of Baltic states and Poland against Russia. Ahead of the summit, Ankara had refused to back the NATO defence plan for the Baltics and Poland until it received more support for its battle with the YPG, including other alliance members recognising it as a terrorist group. In a final press conference after the summit, Stoltenberg also said that NATO was in favour of dialogue and a better relationship with Russia, and believed that China should be part of future arms limitations or reductions talks.

  • Reuters - UK Focus

    UPDATE 2-European shares jump 1% as report revives U.S.-China trade optimism

    European shares bounced back from a four-day slump on Wednesday, lifted by a report that Beijing and Washington are moving closer to a trade deal. The STOXX 600 closed 1.2% up after Bloomberg reported that the two sides were closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal. The report lifted the benchmark from a one-month low hit on Tuesday after U.S. President Donald Trump said a deal might have to wait until after the presidential election next November.

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