Company · Updated
What investors are saying about Hermès International S.C.A. (RMS.PA)
Summary
In the past 30 days, 3 people on 2 investor and market shows discussed Hermès International S.C.A. (RMS.PA) in 10 views. Going by each speaker's latest call, 2 are bullish and 1 is bearish. Chorus has followed Hermès International S.C.A. since October 8, 2026.
Who talks about it most
The latest views
Newest first. Every quote is checked against the episode's transcript.
Vincent Deluard · StoneXBullish
Hermès's multiple has halved despite strong fundamentals; could make money eventually but won't rush.
French luxury names have been de-rated, and Hermès's multiple has roughly halved. The business is still strong, with high margins and a good-quality balance sheet. He thinks that at some point investors could make money on the valuation reset. He would not rush to trade and sees this as a patient way to deploy capital, though eurozone debt stress limits how well European equities can perform overall.
“looking at French luxury, for example, like the multiple on your Hermes or [LVMH], I mean, halved. And they're still pretty good business fundamentally”at 42:39
The Meb Faber Show: StoneX' Vincent Deluard: The S&P Is Hiding a Bear Market | #655 ·
Daniel Mahncke · The Investor's Podcast NetworkBearish
Hermès's sales growth has collapsed to under 3%, with Asia near zero and no improvement in sight.
Hermès sales growth fell from about 40% in 2021, a pandemic-inflated peak, to under 3% over the last twelve months. That is the lowest level in roughly two decades. Hermès has had no negative sales year except 2020, but growth has declined sharply. Early post-pandemic normalisation was understandable, but Daniel says things are not getting better. The Asia slowdown is part of the cause: Asia, and especially China, was the fastest-growing market for the last decade, but it has been Hermès's slowest-growing market over the last three years and was close to zero growth in the latest quarter. The market is therefore more skeptical about luxury companies.
“But sales growth has definitely declined massively. I mean, it was going from 40% in 2021, which again was this abnormally high part of the market, to less than 3% in the last twelve months.”at 6:27
We Study Billionaires: TIP852: Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O'Malley ·
Daniel Mahncke · The Investor's Podcast NetworkBullish
Hermès's waitlist and scarcity model and unmatched history make its brand moat very hard to copy.
Hermès pioneered the waitlist approach in fashion and follows the luxury playbook from the book The Luxury Strategy: keep supply below demand, raise prices over time because demand is high rather than to cover costs, advertise to build the myth rather than to sell, sell only in its own stores and not online, and keep production in France. Its history, which Shawn ties back to making products for Napoleon, is something nobody can copy. Scarcity is gated: buyers must build a purchase history on lower-tier goods before being invited to a flagship store, where they are shown only two or three bags. That drives sales in lower-tier products and protects the brand from the wrong ambassadors. Daniel also notes that the Hermès logo-free design makes its products harder to counterfeit.
“MS does come with tremendous history, though, and a very defined approach to selling luxury. So to some extent, they have pioneered the waitlist approach in fashion, which by now, there are a lot of brands doing that, but MS was sort of the front runner on that.”at 18:52
We Study Billionaires: TIP852: Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O'Malley ·
Shawn O'Malley · The Investor's Podcast NetworkBullish
Hermès' top-tier customers keep buying despite China's slowdown, unlike LVMH's brands.
Brands serving the very top of the market still buy internationally even when China's economy struggles, and Hermès kept its customers. LVMH's brands did not show that same customer stickiness, so Hermès is the more resilient China exposure.
“this is once again an argument for investing in brands that serve the top of the top because those are the consumers that will still go for international brands, maybe not exclusively, but they certainly did not stop buying from Hermes, for example.”at 42:27
We Study Billionaires: TIP852: Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O'Malley ·
Shawn O'Malley · The Investor's Podcast NetworkBullish
Hermès' US sales grew 15% in H1 as top-end US buyers keep spending on luxury.
The US is about a fifth of Hermès' sales and grew 15% in the first half. The S&P 500 returned about 16% over the last twelve months, and AI-driven wealth keeps high-end US buyers insulated from global headwinds, so they can still spend on luxury.
“What's actually carrying the industry right now is The US market. It's about a quarter of sales for LVMH and a fifth for Hermes. And it grew 15% for Hermes in the first half.”at 50:52
We Study Billionaires: TIP852: Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O'Malley ·
Daniel Mahncke · The Investor's Podcast NetworkBullish
Hermès offers a 12-13% expected return from €1,300 with a stable 32x multiple.
The model holds the exit multiple at 32x and assumes 7-8% revenue CAGR to the end of the decade, with margins stable above 40% even through the downturn. That gives about 10% EPS CAGR, plus a growing dividend, and a 12-13% return from €1,300. The stock is now near €1,400, so the return is lower from here. Daniel still waits for better sentiment before buying, since the stock trades above 30 times earnings.
“So in our base case, I expect a seven to 8% revenue CAGR until the end of the decade. ... I personally have EPS to go at a CAGR of about 10%.”at 1:08:21
We Study Billionaires: TIP852: Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O'Malley ·
Shawn O'Malley · The Investor's Podcast NetworkBullish
Hermès grows without diluting its brand, unlike LVMH's acquisition-driven conglomerate model.
Shawn appreciates Hermès' storytelling and its growth without diluting brand quality or becoming a conglomerate that buys other brands, as LVMH has. This makes it the closest he has come to wanting to buy Hermès shares.
“So I do have a greater appreciation for makes a company like Hermes special and how powerful the storytelling around their brand is and how they've also managed to grow without diluting their brand quality or by turning into a conglomerate like LVMH where they're just acquiring other brands.”at 1:09:43
We Study Billionaires: TIP852: Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O'Malley ·
Shawn O'Malley · The Investor's Podcast NetworkNeutral
Hermès' watch push struggles as watches are seen as entry purchases for Birkin bags.
Hermès has made big advances in watch quality and is trying to rival Rolex, but it has long not been taken seriously. Customers treat its watches as entry-level purchases on the way to the Birkin bag, which limits how far the watch business can expand.
“Part of the problem that's holding them back is people just treat the watches as one of those entry level purchases that you can make to prove yourself worthy of receiving what they're really after, which is the Birkin bag.”at 1:13:03
We Study Billionaires: TIP852: Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O'Malley ·
Shawn O'Malley · The Investor's Podcast NetworkNeutral
Hermès is an incredible business with strong brand storytelling, but its selloff lacks capitulation.
Shawn sees Hermès as a very strong business. Its watches have improved in quality but are still treated as an entry-level purchase that buyers make to earn the right to a Birkin, which limits how far the watch line can expand. He says the stock has seen some blood in the streets, but not enough to mark the capitulation point that would create a generational buying opportunity. He also says he would need that kind of setup before investing in luxury, so he is not buying yet despite admiring the business.
“I do think it's a pretty incredible business when you think about what they've been able to do and the storytelling they've been able to cultivate around their brand. And so at times it does feel like maybe there's been blood in the streets, but not as much as we'd want to see”at 1:13:18
We Study Billionaires: TIP852: Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O'Malley ·
Daniel Mahncke · The Investor's Podcast NetworkBearish
Hermès outlook is not exciting enough to buy now; he would need about 20x cash flow.
After reviewing the numbers, stories and earlier episodes, Daniel found nothing that made him excited about Hermès's outlook, especially for the next couple of years. He would only want to buy once the shares trade at a cash-flow multiple near 20x and nobody calls them a great opportunity anymore. Getting there would probably take a brand-damaging event, such as moving production out of France, which would break the investment thesis. Even a macro crash would not be enough, because better opportunities would likely appear elsewhere. For these reasons he is not buying Hermès today.
“But I just couldn't find anything that got me really excited about the outlook, especially for the next couple of years.”at 1:15:19
We Study Billionaires: TIP852: Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O'Malley ·
Ask your AI about Hermès International S.C.A. (RMS.PA)
Chorus gives Claude, ChatGPT and other assistants every view on Hermès International S.C.A. (RMS.PA) from the people Chorus follows. Ask who's bullish, who's bearish, who changed their mind, and why.
Chorus reports what speakers said. It isn't investment advice.