MacroMaven @MacroMaven: "𝗘𝗔𝗥𝗡𝗜𝗡𝗚𝗦 𝗨𝗣𝗗𝗔𝗧𝗘: $RMS.PA Its another..."

United Kingdom

𝗘𝗔𝗥𝗡𝗜𝗡𝗚𝗦 𝗨𝗣𝗗𝗔𝗧𝗘: $RMS.PA (Hermes International) Its another beautiful day in Bali. Despite the ongoing correction in the market, there are reasons to be very optimistic amidst a flurry of earnings from some of my favourite holdings. Not least of which, is Hermès. The French luxury giant is perhaps the best example of what I look for in a stock. As I've spoken about my process in other posts - and will also be launching a comprehensive course on Skool in the near future - I want to keep the focus here on earnings. You see, the luxury sector has taken a beating in the past few months. $KER.PA (Kering SA), the French owner of brands including Gucci and Saint Laurent, issued a profit warning earlier this week, joining $BRBY.L (Burberry Group), whilst $MC.PA (LVMH Moet Hennessy Louis Vuitton SA) and $CFR.ZU (Compagnie Financiere Richemont SA) have also noted the impact of a slowdown demand specifically in Asia. In short, the legends of luxury are finding it tough. Apart from one. I've explained before why $RMS.PA is distinct from the names I just mentioned. It is the epitome of true luxury, and truly wealthy clientele, as opposed to the aspirational demographic that makes up a significant chunk of LVMH's sales, for example. $RMS.PA hits different, and it doesn't rely on tourism to sell its $10,000+ birkin bags (which it cannot produce enough of, anyway). It therefore isn't as exposed to China, and slowdowns in travel & leisure, either. And the kicker? If things get ugly enough in the macro economy to actually put pressure on $RMS.PA, then you can rest assured that their clients will emerge even wealthier on the other side of a full-blooded recession. Those with money, will capitalise on crisis... on have more to spend on the other side (when $RMS.PA will have since followed through with its periodic price increases). We'll leave the virtues of Veblen goods for another day, but this in short is why I have no trouble sleeping at night as an investor in Hermès. 𝙉𝙤𝙬 𝙩𝙤 𝙩𝙝𝙚 𝙧𝙚𝙥𝙤𝙧𝙩: 💬 𝘊𝘌𝘖 𝘈𝘹𝘦𝘭 𝘋𝘶𝘮𝘢𝘴: "𝘯𝘰 𝘣𝘪𝘨 𝘪𝘯𝘵𝘦𝘳𝘳𝘶𝘱𝘵𝘪𝘰𝘯 𝘪𝘯 𝘵𝘳𝘦𝘯𝘥𝘴". "𝘐𝘤𝘰𝘯𝘪𝘤 𝘤𝘢𝘵𝘦𝘨𝘰𝘳𝘪𝘦𝘴 𝘭𝘪𝘬𝘦 𝘭𝘦𝘢𝘵𝘩𝘦𝘳 𝘨𝘰𝘰𝘥𝘴 𝘤𝘰𝘯𝘵𝘪𝘯𝘶𝘦 𝘵𝘰 𝘥𝘳𝘪𝘷𝘦 𝘨𝘳𝘰𝘸𝘵𝘩," 𝘴𝘢𝘪𝘥 𝘓𝘶𝘤𝘢 𝘚𝘰𝘭𝘤𝘢, 𝘢𝘯𝘢𝘭𝘺𝘴𝘵 𝘢𝘵 𝘉𝘦𝘳𝘯𝘴𝘵𝘦𝘪𝘯, 𝘳𝘦𝘧𝘦𝘳𝘳𝘪𝘯𝘨 𝘵𝘰 𝘵𝘩𝘦 17.9% 𝘨𝘳𝘰𝘸𝘵𝘩 𝘪𝘯 𝘵𝘩𝘦 𝘤𝘰𝘮𝘱𝘢𝘯𝘺'𝘴 𝘭𝘢𝘳𝘨𝘦𝘴𝘵 𝘥𝘪𝘷𝘪𝘴𝘪𝘰𝘯, 𝘭𝘦𝘢𝘵𝘩𝘦𝘳 𝘨𝘰𝘰𝘥𝘴. 💬 𝘴𝘭𝘪𝘨𝘩𝘵𝘭𝘺 𝘭𝘦𝘴𝘴 𝘵𝘳𝘢𝘧𝘧𝘪𝘤 𝘸𝘪𝘵𝘩 𝘢𝘴𝘱𝘪𝘳𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘤𝘭𝘪𝘦𝘯𝘵𝘴, 𝘸𝘩𝘪𝘤𝘩 𝘸𝘢𝘴 𝘪𝘮𝘱𝘢𝘤𝘵𝘪𝘯𝘨 𝘩𝘪𝘨𝘩𝘦𝘳 𝘷𝘰𝘭𝘶𝘮𝘦 𝘱𝘳𝘰𝘥𝘶𝘤𝘵𝘴 𝘭𝘪𝘬𝘦 𝘧𝘢𝘴𝘩𝘪𝘰𝘯 𝘢𝘤𝘤𝘦𝘴𝘴𝘰𝘳𝘪𝘦𝘴, 𝘪𝘯𝘤𝘭𝘶𝘥𝘪𝘯𝘨 𝘴𝘪𝘭𝘬 𝘴𝘤𝘢𝘳𝘷𝘦𝘴. 𝘛𝘩𝘢𝘵 𝘱𝘶𝘴𝘩𝘦𝘥 𝘴𝘢𝘭𝘦𝘴 𝘪𝘯 𝘵𝘩𝘦 𝘨𝘳𝘰𝘶𝘱'𝘴 𝘴𝘮𝘢𝘭𝘭𝘦𝘳 𝘴𝘪𝘭𝘬 𝘢𝘯𝘥 𝘵𝘦𝘹𝘵𝘪𝘭𝘦𝘴 𝘥𝘪𝘷𝘪𝘴𝘪𝘰𝘯 𝘥𝘰𝘸𝘯 5.6% 𝘥𝘶𝘳𝘪𝘯𝘨 𝘵𝘩𝘦 𝘲𝘶𝘢𝘳𝘵𝘦𝘳. 💬 𝘚𝘢𝘭𝘦𝘴 𝘨𝘳𝘦𝘸 +13% 𝘵𝘰 3.7 𝘣𝘪𝘭𝘭𝘪𝘰𝘯 𝘦𝘶𝘳𝘰𝘴, 𝘪𝘯-𝘭𝘪𝘯𝘦 𝘸𝘪𝘵𝘩 𝘦𝘹𝘱𝘦𝘤𝘵𝘢𝘵𝘪𝘰𝘯𝘴 💬 𝘚𝘢𝘭𝘦𝘴 𝘪𝘯 𝘈𝘮𝘦𝘳𝘪𝘤𝘢 𝘨𝘳𝘦𝘸 +13%, 𝘢𝘤𝘤𝘦𝘭𝘦𝘳𝘢𝘵𝘪𝘯𝘨 𝘧𝘳𝘰𝘮 +11.8% 𝘪𝘯 𝘘1. 𝘊𝘌𝘖 𝘤𝘢𝘭𝘭𝘴 𝘪𝘵 "𝘢 𝘨𝘳𝘦𝘢𝘵 𝘴𝘶𝘳𝘱𝘳𝘪𝘴𝘦". 💬 𝘚𝘢𝘭𝘦𝘴 𝘪𝘯 𝘈𝘴𝘪𝘢 𝘦𝘹. 𝘑𝘢𝘱𝘢𝘯, 𝘨𝘳𝘦𝘸 +5.5%. 𝘑𝘢𝘱𝘢𝘯 +19.5%. 💬 𝘊𝘩𝘪𝘯𝘦𝘴𝘦 𝘤𝘭𝘪𝘦𝘯𝘵𝘴 𝘢𝘳𝘦 𝘤𝘶𝘳𝘳𝘦𝘯𝘵𝘭𝘺 𝘭𝘰𝘰𝘬𝘪𝘯𝘨 𝘧𝘰𝘳 𝘩𝘪𝘨𝘩-𝘲𝘶𝘢𝘭𝘪𝘵𝘺 𝘱𝘳𝘰𝘥𝘶𝘤𝘵𝘴, "𝘯𝘰𝘵 𝘯𝘦𝘤𝘦𝘴𝘴𝘢𝘳𝘪𝘭𝘺 𝘸𝘪𝘵𝘩 𝘭𝘰𝘨𝘰𝘴", 𝘢 𝘤𝘩𝘢𝘯𝘨𝘦 𝘵𝘩𝘢𝘵 𝘸𝘪𝘭𝘭 𝘣𝘦𝘯𝘦𝘧𝘪𝘵 𝘵𝘩𝘦 𝘨𝘳𝘰𝘶𝘱. It's good to be the king. Have a great weekend, James www.reuters.com/business/retail-consumer/hermes-2q-sales-rise-13-continued-appetite-high-end-luxury-2024-07-25/

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