LVMH, Hermes, Kering: what are the prospects for luxury stocks in 2022?
2022 outlook for the Hermès share
The Hermès share is the one that has made the most progress on the stock market in 2021. The highly integrated artisanal model, the balanced distribution network, the creativity of the collections and the loyalty of the customers give confidence to the market. Hermès has a unique know-how in leather goods which seems to make the company impervious to macroeconomic bad weather.
Sales of Leather Goods & Saddlery are expected to benefit from strong deliveries thanks to very sustained demand. Hermès will also increase its production capacities, with the leather goods factory in Louviers (Eure) planned for 2022, that of Sormonne (Ardennes) by 2023 and a new site in Riom (Puy-de-Dôme) for 2024.
Hermès is expected to grow by 12% over the year 2022, for a turnover which should exceed 10 billion euros. The financial resilience of Hermès comes at a high price. Today the valuation of the Hermès share on the stock market stands at 18.2x its turnover, and 72.5x its profits.
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