This article was originally written by Chelsey Dulaney for The Wall Street Journal and published on July 29, 2022.
The rich keep spending.
Luxury goods maker Hermes International’s stock soared Friday after the company reported sharply higher profit and revenue despite global recession fears.
Shares of the Birkin bag maker rose 5.5% in Paris, making it one of the best performers in the benchmark Euro Stoxx 50 index.
Citigroup analysts described Hermes shares as a potential “place to hide” in the second half of the year. While retailers like Amazon and Walmart have flagged weakening consumer demand in their latest results, the wealthy customers of Hermes and other luxury goods appear to still be spending.
Hermes revenue rose 23% in the first half of the year excluding currency swings, while its operating margin rose to a record high of 42%. The company said sales are rebounding in China–a crucial sales market for luxury goods–as Covid-19 restrictions ease.
Results from luxury retailers LVMH Moët Hennessy Louis Vuitton, Prada and Moncler have also topped Wall Street expectations this week. LVMH’s shares have gained 5.2% this week, while Prada’s stock is up 2.8% and Moncler has risen 11%.
The Fine Print
This offering is made in reliance on Regulation A under the Securities Act of 1933. The securities offered are speculative, illiquid, and an investor could lose the entire investment. Investors should read the relevant Offering Circular and consider the risks disclosed therein before investing.
IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. REGULATION A OFFERINGS ARE SPECULATIVE, ILLIQUID, AND INVOLVE A HIGH DEGREE OF RISK, INCLUDING THE POSSIBLE LOSS OF YOUR ENTIRE INVESTMENT.
LUXUS, through its affiliated entities, is offering securities through the use of an Offering Statement that the Securities and Exchange Commission (‘SEC”) has qualified under Tier II of Regulation A. While the SEC staff reviews certain forms and filings for compliance with disclosure obligations, the SEC does not evaluate the merits of any offering, nor does it determine if any securities offered are “good” investments.
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The securities herein offered by this issuer as herein above mentioned are highly speculative, investing in such securities involves significant risk, including possible loss of principal amount of investment.
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