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Hermès May Signal China Luxury Market Rebound
Developing
In Short: Analysts expect Hermès' performance to reflect China's luxury goods market recovery, with nearly half of its sales coming from Asian markets.
You May Also Like “The growth premium that justified its valuation premium vs the sector is converging,” said RBC Capital Markets analyst Piral Dadhania in the report, estimating that Hermès’ revenue and EBIT growth advantage over the luxury sector will narrow to about two percentage points from 2027, versus eight points in 2025.
Deborah Aitken, senior luxury analyst at Bloomberg Intelligence, said she once expected China to become a much larger part of the global luxury market.
“Pre-COVID, I used to say that within five years China would be one-third of the market for luxury goods, and now it’s less than half that,” she said.
“[For] Hermès, almost half of its sales are from the Asian markets. It’s one of the highest exposed of the traditional luxury peers,” Aitken said.
What's confirmed
What's still developing
- Single-source account; further confirmation still arriving.
Sources
- WWDlink