Cindy Ord/Getty Images Entertainment The reader may be wondering, what could Hermes (OTCPK:HESAY) possibly have to do with artificial intelligence? After all, luxury goods companies appear to be some of the least impacted by AI. Their businesses rely heavily on brick-and-mortar stores and incorporate little to no software aside from the occasional website. In Hermes' case, AI plays even less of a direct role on day-to-day operations as the company does not automate its manufacturing process with machine ...

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Hermès’s discipline in good times might make it more resilient in downturns. Photo: Edward Berthelot/Getty ImagesHermès is a brand that shows its real mettle in a downturn. The secret to its steady growth might be the restraint it shows in good times.  The French handbag maker’s shares gained 33% in 2023, making it the luxury sector’s best-performing stock. Parisian rival LVMH Moët Hennessy Louis Vuitton , which owns Christian Dior and is also considered one of the safest bets in luxury, rose 8%. But across ...

Falf Res 28 July 2023 A R E S P O N S I B L E C R A F T S M A N S H I P B U S I N E S S M O D E L C R E A T I V I T Y A N D S A V O I R - F A I R E Creativity of the 16 métiers around the theme of the year, Astonishment Promotion and exploration of savoir-faire Q U A L I T Y A N D D U R A B I L I T Y Responsible sourcing More than 80 exceptional raw materials J O B C R E A T I O N A N D R E S P O N S A B I L I T Y Workforce 2x in 10 years 62% in France Value-sharing I N T E G R A T I O N A N D E X C L U S I ...

Financial Data and Key Metrics Changes - Revenue for the first half of 2023 reached €6.7 billion, up 25% at constant exchange rates and 22% at current exchange rates compared to the previous year [19][27] - Recurring operating income increased by 28% to €2.9 billion, with a recurring operating profitability of 44% of sales, up 2 points from the first half of 2022 [32][34] - Net income group share exceeded €2.2 billion, a 36% increase year-on-year, resulting in a net profitability of 33% of sales, up 3 points from the previous year [34] Business Line Data and Key Metrics Changes - Saddlery and Leather bags grew by 21%, driven by sustained demand [24] - Clothing and accessories saw a remarkable growth of 35%, supported by successful ready-to-wear collections [24] - Perfume and Beauty increased by 10%, benefiting from recent launches [25] - Watches grew by 24%, reflecting strong performance in creativity and craftsmanship [25] - Other métiers of Hermès experienced a growth of 32%, highlighting the brand's creative strength [25] Market Data and Key Metrics Changes - All regions reported growth above 20%, with France at 24%, Europe excluding France at 22%, and Japan at 26% [22] - Asia excluding Japan saw a growth of 28%, particularly strong in Greater China and other regions like Singapore and Thailand [22] - The Americas reported a growth of 20%, maintaining a positive trajectory [23] Company Strategy and Development Direction - The company continues to invest in production capacity and retail network expansion, with three new leather workshops inaugurated in France [5][9] - Strategic investments are focused on securing supply chains and enhancing production capabilities [5][10] - The company emphasizes its commitment to sustainable growth and local know-how, with over 900 new hires in the first half of 2023 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's unique corporate model and the dynamism of its teams globally [41] - The second half of 2023 is expected to see continued job creation and investment across all business lines [42] - The company anticipates a strong performance driven by local customers and a rebound in tourism [56][58] Other Important Information - The company has committed to a corporate social responsibility policy, focusing on sustainable practices and local community engagement [13][18] - Cash flow for the first half of 2023 was €2.6 billion, up 36% year-on-year, with a net cash position of €9.8 billion [38][39] Q&A Session Summary Question: Organic growth of the leather and saddlery division - Management confirmed that the 21% growth could be extrapolated for the full year, with expectations of around 15% total growth including price effects [46][47] Question: EBIT margin expectations - Management noted that the first half benefited from positive currency hedging effects, which may not recur in the second half [48] Question: Impact of tourism on sales - Management highlighted that local customers remain the main driver of growth, with tourism flows contributing positively, especially in Europe and the U.S. [56][58] Question: Proportion of VIP clients and pricing strategy - Management indicated that the increase in middle-class customers is significant, and pricing is primarily driven by production costs rather than market positioning [69][89] Question: Performance in the U.S. market - Management reported strong growth across all product categories in the U.S., with no significant slowdown observed [94][96]