Investors with an interest in Consumer Products - Staples stocks have likely encountered both National Vision (EYE) and Hermes International SA - Unsponsored ADR (HESAY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estima ...

Group 1 - UBS has raised the target price for Hermès International from €2260 to €2310 [1]

Core Viewpoint - The analysis focuses on high-quality companies with competitive advantages and defensibility, particularly in the European and North American markets, without constraints on market capitalization [1]. Group 1 - The last article on Hermès International was published in March 2023, where the stock was rated as a "Sell" [1]. - The analyst has a background in sociology, holding a Master's Degree with an emphasis on organizational and economic sociology [1].

Core Viewpoint - Hermes International SCA is a leading luxury brand known for its high-end products and strong market position, despite a slight earnings miss in its latest report [1][2]. Financial Performance - On February 12, 2026, Hermes reported earnings per share (EPS) of $2.57, slightly below the estimated $2.59, while achieving a revenue of approximately $9.22 billion, reflecting a 9.8% increase for the fourth quarter [2]. - Strong sales in the United States and Japan contributed to the revenue growth, aligning with market expectations [2]. Market Valuation - Hermes has a price-to-earnings (P/E) ratio of approximately 51.18, indicating strong investor confidence in the company's future growth prospects despite the slight EPS miss [3]. - The price-to-sales ratio is about 14.58, and the enterprise value to sales ratio is around 14.06, illustrating the premium investors place on Hermes' sales [4]. Financial Stability - The company maintains a conservative capital structure with a low debt-to-equity ratio of 0.12, suggesting limited reliance on debt [5]. - Hermes has a strong current ratio of 4.50, indicating robust short-term financial health and the ability to cover current liabilities with current assets [5].

Core Insights - The strong performance of Hermes in the recent quarter is primarily attributed to the sales of the Birkin bag, rather than other product categories like perfume or beauty [1] - The growth in sales is largely driven by domestic consumers, particularly those who own multiple products from the brand [2] Sales Performance - Leather goods now account for 45% of sales, down from 55%, indicating a diversification in product offerings that includes homewares, ready-to-wear, and jewelry [3] - The company reported a growth of 17% in Q1 and 10% in Q4, showing positive momentum [3] Operational Strengths - Hermes maintains a vertically integrated model, which is a core strength, allowing it to manage raw material sourcing and labor effectively while keeping margins healthy [4] - The company hires around 250 new artisans annually at one production facility, contributing to its craftsmanship and quality [4] Financial Metrics - Hermes achieved a gross margin increase of over 100 basis points, surpassing consensus expectations, along with an increase in operating margin [5] - Despite challenges such as tariffs and increased corporate tax in France, the company delivered solid financial results, showcasing impressive performance [6]

Group 1: Manufacturing Sector - The report highlights a positive outlook for the textile manufacturing sector as tariff impacts are easing, leading to improved export conditions. The demand side shows a mixed performance in global apparel retail, with domestic recovery being weak while overseas apparel demand remains stable. The export decline has narrowed following progress in US-China trade negotiations, and manufacturing orders are expected to improve in 2026 due to a healthy inventory level among downstream brand clients [3][6][13]. - Key companies to watch include Shenzhou International, which has a lower exposure to the US market and is expected to see marginal improvements from major clients, and Huayi Group, which is experiencing strong growth from new clients and is ramping up production capacity [3][21][29]. Group 2: Sportswear Sector - The domestic sportswear market is showing signs of weak recovery, with high-end brands like Li Ning and Tebu International demonstrating resilience. The report anticipates a recovery in 2026 driven by macroeconomic improvements and policy catalysts, particularly with the upcoming Olympic events [3][6][19]. - Internationally, high-end sports brands are experiencing differentiated growth dynamics. ON is maintaining a strong brand image and expanding in the Asia-Pacific market, while Amer Sports is benefiting from its multi-brand strategy. However, brands like Lululemon and Deckers are facing short-term pressures in the North American market [3][6][19]. Group 3: Luxury Goods Sector - The luxury goods market in China is showing signs of gradual recovery, driven by wealth effects from the capital market and stabilization in the real estate market. Sales from luxury groups like LVMH and Richemont have improved significantly in Q3 2025, indicating a positive trend in the luxury sector [3][7]. - The report notes a shift in consumer behavior, with a loss of "aspirational consumers" and an increase in the importance of top-tier customers. This shift is leading to a focus on value, experience, and cost-effectiveness in luxury consumption, which is benefiting local high-end brands [4][7].

Core Viewpoint - The document provides information regarding the total number of voting rights and shares comprising the share capital of a company, in compliance with French regulations [1] Group 1 - The announcement is made in accordance with Article L. 233-8 of the French Commercial Code, which mandates disclosure of voting rights and share capital [1] - The report likely includes specific figures related to the total number of shares and voting rights, although these details are not explicitly provided in the excerpt [1]

Group 1: European Stock Performance - In 2025, European stocks outperformed U.S. stocks, with Germany's DAX gaining 23%, Italy's FTSE MIB rising nearly 32%, and Spain's IBEX 35 skyrocketing 49% while the S&P 500 gained 16% [1] - Over the last decade, Hermès International Société delivered an annualized return of about 23%, with shares increasing from $32.19 to around $260, resulting in a total return of nearly 700% [2] - LVMH Moët Hennessy Louis Vuitton achieved a total return of 476% over the last decade, translating to an annualized return of about 19% [3][4] Group 2: Notable Companies - ASML, a leading semiconductor company, delivered explosive total returns of 1,585% over the last decade, with shares rising from $77.47 to over $1,200, resulting in an annualized return of nearly 33% [5] - Ferrari's stock saw a total return of about 829% over the last decade, with shares increasing from approximately $40 to over $350, yielding an annualized return of nearly 25% [6]

Market Performance - France's equity benchmark CAC 40 opened flat but drifted lower, down 49.25 points or 0.6% at 8,162.25 before noon [1] - Notable declines were seen in Legrand and Dassault Systemes, which fell 3.7% and 3.6% respectively, while Capgemini and Saint Gobain lost over 3% [1] Company Movements - BNP Paribas, Hermes International, Schneider Electric, Publicis Groupe, LVMH, Air Liquide, Accor, and Societe Generale experienced losses ranging from 1% to 1.6% [2] - In contrast, Orange and STMicroElectronics gained 2.6% and 2.5% respectively, with Michelin up 1.5% and Thales and Engie gaining 1.2% and 1.1% respectively [2] Economic Indicators - France's inflation eased to a seven-month low in December, attributed to a significant drop in energy prices [2] - The consumer price index (CPI) showed an annual increase of 0.8%, the slowest since May, following a 0.9% rise in November [3] - EU harmonized inflation also unexpectedly slowed to 0.7% in December from 0.8% in November, contrary to forecasts [3] PMI Data - The HCOB France Composite PMI for December was revised to 50.0, indicating stagnant output, with the manufacturing PMI at 50.7 and the Services PMI at 50.1 [4] - The HCOB Flash Eurozone Composite PMI for December was revised to 51.5, down from a flash estimate of 51.9 and November's 30-month high of 52.8 [5]

Core Viewpoint - LVMH Moët Hennessy Louis Vuitton has responded to allegations regarding the unlawful acquisition of shares in Hermès International, asserting that the claims are baseless and part of a coordinated media campaign [1][2][4]. Group 1: Allegations and Legal Actions - Nicolas Puech, a fifth-generation heir of the Hermès family, is pursuing a civil suit against LVMH's chairman Bernard Arnault and his holding companies, claiming billions in damages [1]. - LVMH has threatened legal action to defend itself against what it describes as unfounded allegations and a coordinated media campaign [2][4]. - The accusations are linked to LVMH's acquisition of a significant stake in Hermès in 2010 through cash-settled equity swaps, which led to a legal battle that was settled in 2014 [3]. Group 2: LVMH's Position - LVMH has firmly stated that it has never diverted shares of Hermès and does not hold any hidden shares, countering Puech's claims [5]. - The company emphasizes its history of refraining from public controversy and legal disputes, despite facing criticism from detractors [4]. - LVMH reserves the right to take necessary actions to assert its rights in this matter [5]. Group 3: Background on Puech - Puech, as the largest family shareholder, was central to the LVMH-Hermès conflict, having refused to lock up shares with other family members to protect against a potential takeover [6]. - Puech claims he was unaware that his former wealth manager sold his shares, which constituted 5.8% of Hermès' capital, without his consent [6].