Unilever(UK)(US:UL) 智通财经网·2025-11-03 07:05Core Viewpoint - European companies have performed better than expected in response to U.S. tariffs, indicating a positive outlook for profit growth in the coming year, with market expectations of double-digit profit increases [1][3]. Group 1: Performance of European Companies - A basket of European stocks most affected by tariffs, compiled by Goldman Sachs, outperformed the market in October, rising approximately 6%, which is double the increase of the European Stoxx 600 index and three times that of domestic stocks [1]. - Companies like Hermès, Unilever, and Galderma have reported significant sales growth in the Americas, with Hermès seeing a 14.1% increase in sales in the region [3][6]. - The frequency of mentions of tariffs in European earnings calls has been declining, indicating a growing optimism among EU companies regarding their outlook [10]. Group 2: Strategic Adjustments and Cost Management - Companies are adapting to tariffs by cutting costs to avoid raising prices, which could push consumers towards cheaper brands, as seen with Unilever's strategy [6]. - Pharmaceutical companies in Europe are negotiating with the U.S. government to lower drug prices and are committing billions in investments to mitigate the impact of upcoming sector tariffs [6][11]. - Some companies, like Stellantis, reported a 13% increase in net income due to recovery in North American business, while also committing to significant investments in the U.S. [11]. Group 3: Market Sentiment and Future Outlook - Analysts suggest that the gap between profit growth in the U.S. and Europe is expected to narrow, with a general market expectation of a 12% increase in earnings per share for Stoxx 600 constituents next year [3][6]. - There is a growing belief that tariffs are manageable and will not cause significant damage, although some caution remains regarding the long-term effects and currency impacts on earnings [12].