How Hermès’ Sustained Revenue Growth in Q3 (ENXTPA:RMS) Has Changed Its Investment Story

• Hermès International Société en commandite par actions recently reported that third quarter 2025 consolidated revenue reached €3.88 billion, up from €3.70 billion the previous year, with year-to-date revenue rising to €11.92 billion compared to €11.21 billion last year.
• This ongoing revenue growth signals continued resilience and demand for Hermès’ products in the global luxury market.
• Let's consider how Hermès’ solid third quarter revenue performance could shape its long-term investment narrative and future prospects.

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Hermès International Société en commandite par actions Investment Narrative Recap

To be a shareholder in Hermès International, you need to believe in the enduring power of its globally recognized brand, robust pricing power, and disciplined supply strategy in the ultra-luxury segment. The recent uptick in third quarter revenue reinforces the most important short-term catalyst, resilient global demand for luxury goods, even as questions around consumer sentiment in China and margin pressure linger. Based on these results, the impact on the primary risks appears limited for now.

The July 2025 announcement, highlighting strong sales growth but a dip in net income for the half year, is especially relevant here. Despite ongoing revenue gains, investors saw net profit margins shrink in the first half, a reminder that higher raw material and operating costs could offset top-line momentum and test the business’s ability to sustain record earnings growth.

Yet, despite solid revenue trends, rising cost pressures present a challenge that every investor should be aware of, especially if...

Read the full narrative on Hermès International Société en commandite par actions (it's free!)

Hermès International Société en commandite par actions is projected to reach €20.3 billion in revenue and €6.3 billion in earnings by 2028. This outlook is based on annual revenue growth of 9.0% and an increase in earnings of €1.8 billion from the current level of €4.5 billion.

Uncover how Hermès International Société en commandite par actions' forecasts yield a €2398 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided nine individual fair value estimates for Hermès International, ranging widely from €938 to €2,436 per share. This broad spread comes as some market participants focus on the company’s ability to maintain industry-leading margins amid rising cost pressures, inviting you to compare several distinct viewpoints about Hermès’ future.

Explore 9 other fair value estimates on Hermès International Société en commandite par actions - why the stock might be worth as much as 12% more than the current price!

Build Your Own Hermès International Société en commandite par actions Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hermès International Société en commandite par actions research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Hermès International Société en commandite par actions research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hermès International Société en commandite par actions' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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