Will LVMH’s China Rebound Shift the Outlook for Hermès (ENXTPA:RMS) and the Luxury Sector?

LVMH posted a 1% rise in third-quarter sales and reported a return of growth in China, signaling improved demand and prompting a rally across luxury stocks in Europe in recent days. The rebound in LVMH's business, combined with revived interest among Chinese shoppers, has increased optimism that the luxury sector may be moving beyond its recent sluggish period. We'll explore how renewed spending momentum in China and across the broader luxury industry could influence Hermès’ outlook going forward.

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Hermès International Société en commandite par actions Investment Narrative Recap

Hermès shareholders need to have confidence in the long-term appeal of brand exclusivity and disciplined supply, even as the luxury sector cycles through unpredictable demand patterns. The recent sales rebound reported by LVMH, thanks to improved Chinese demand, provides some near-term optimism for Hermès, yet the most important short-term catalyst remains a clear, sustained recovery among Chinese clients, while the biggest risk is ongoing uncertainty in China’s consumer sentiment and spending. For now, the immediate impact of LVMH’s news is sentiment-driven and not material to Hermès’ fundamentals just yet.

Among recent announcements, Hermès’ latest earnings report is especially relevant, revealing sales growth for the first half of 2025 as China emerged from COVID-related disruptions. However, net income declined year over year, reflecting margin pressure, an important context as investors weigh how much of the sector’s newfound optimism truly translates to Hermès’ bottom line. In contrast, one unresolved challenge investors should continue watching is...

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 assumes a 9.0% annual revenue growth rate and a €1.8 billion increase in earnings from the current €4.5 billion level.

Uncover how Hermès International Société en commandite par actions' forecasts yield a €2423 fair value, a 11% upside to its current price.

Exploring Other PerspectivesENXTPA:RMS Community Fair Values as at Oct 2025

The Simply Wall St Community has posted 12 individual fair value estimates for Hermès stock, spanning from €945.87 to €2,435.58. With views diverging by over €1,400 per share, private forecasts showcase differing opinions on the impact of changing consumer sentiment in China and how quickly any upturn could boost Hermès’ performance, reminding you to explore a range of perspectives when weighing your own outlook.

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Explore 12 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

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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.

Companies discussed in this article include RMS.enxtpa.

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