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DB cuts Hermes earning projections

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  • Faust
    kitsch killer
    • Sep 2006
    • 37849

    DB cuts Hermes earning projections

    Can we now say this is officially over? If Hermes can't make money, who can (except Louis Vuitton).

    PARIS — With a worsening outlook for luxury, Deutsche Bank has cut its earnings forecasts on Hermès International by 10 percent and projects slim fourth-quarter sales growth of 7.5 percent, or 0.7 percent in organic terms.

    “Worsening luxury news flow, in particular from the U.S., suggests to us that Hermès will see a rapid slowdown in growth rates,” analyst Warwick Okines wrote in a report released Monday.

    The investment firm also trimmed its 2009 forecasts on Burberry Group plc by 12 percent, while saying it has “more confidence” in the London-based firm “relative to other luxury stocks since the business is not coming off peak margins.” It also expects further cost-saving initiatives.

    Burberry is due to release its third-quarter sales in mid-January, with most other luxury players reporting fourth-quarter figures in the weeks that follow.

    Deutsche Bank expects Hermès to post an organic sales decline of 3.7 percent in 2009, versus an estimated 10 percent gain in 2008.

    Hermès has been one of the most immune of Europe’s big luxury players, citing no material slowdown in the U.S. in the third quarter, when it posted organic growth of 17.9 percent. Deutsche Bank maintains a “sell” rating on the stock, with a price target of 63 euros, or $87.38 at current exchange.
    Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

    StyleZeitgeist Magazine
  • Fuuma
    Senior Member
    • Sep 2006
    • 4050

    #2
    Ouch, Hermès is my favourite among the old school accessories houses.
    Selling CCP, Harnden, Raf, Rick etc.
    http://www.stylezeitgeist.com/forums...me-other-stuff

    Comment

    • Pinoy
      Senior Member
      • Dec 2006
      • 661

      #3
      ^

      +1, fuuma. a few of their designs are actually quite ingenious and many of the one-piece leather designs are remind me of m.a+

      haha i feel funny comparing m.a+ to hermes.

      Comment

      • reborn
        Senior Member
        • Aug 2008
        • 833

        #4
        Originally posted by danieldy View Post
        ^

        +1, fuuma. a few of their designs are actually quite ingenious and many of the one-piece leather designs are remind me of m.a+

        haha i feel funny comparing m.a+ to hermes.

        Not as funny as Richard Stark of Chrome Hearts stating that Hermes is the standard they look to emulate.

        Comment

        • Pinoy
          Senior Member
          • Dec 2006
          • 661

          #5
          Originally posted by reborn View Post
          Not as funny as Richard Stark of Chrome Hearts stating that Hermes is the standard they look to emulate.
          maybe Stark was referring to the prices?

          Comment

          • reborn
            Senior Member
            • Aug 2008
            • 833

            #6
            Originally posted by danieldy View Post
            maybe Stark was referring to the prices?

            “The idea was to be like Hermes or Brooks Brothers – a classic, lifestyle company for the 21st century and beyond,” says Stark

            I also read somewhere that CH wanted to be competitively priced with Hermes.

            I love both Hermes and CH for different things.

            Comment

            • Sombre
              Senior Member
              • Jan 2009
              • 1291

              #7
              It's not that bad for Hermes. They've had a good 2008, and fourth quarter earnings are still expected to grow, albeit marginally, but that's more than many other companies can say.

              2009 is expected to be a weak year for the company, but that's true for the vast majority. Compared to the competition, Hermes is in very little trouble.
              An artist is not paid for his labor, but for his vision. - James Whistler

              Originally posted by BBSCCP
              I order 1 in every size, please, for every occasion

              Comment

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