Hermes H letter pink buckle red leather belt
Item NO:Regular Price: $466
Special Price:$109
Limit points for buying:99 integral
Notwithstanding a very difficult environment in luxury goods, continuing subdued demand in Japan and in the US, hermes scarf (HESAF.PK) is seeing some improvement since the end of March. As a result, management is looking for flat sales at constant rates this year, following almost 5% decline in sales in Q1. Forex should provide a further 6-7% boost to sales in 2009. hermes gürtel is showing a superior resilience, notably in its core leather handbag business which represented 43% of sales last year. It seems that the upscale positioning of Hermes makes it “almost” immune to the financial crisis, at least in handbags. This is good news as we estimate that handbags account for more than 60% of Hermes profits. As a result, Hermes could be the only luxury good player posting positive results in 2009.
Longer term, hermes ties offers double digit EPS growth prospects, driven by the continuing extension of the retail network (direct operated stores represent less than 60% of the total) coupled with product diversification, notably the watches division which is still very small compared with Richemont or Swatch (SWGNF.PK). Despite the fact that its texture is mirror-slick and not distressed like the metallics I usually prefer, the fact that they used a gunmetal silver instead of a bright, blue-based silver is really winning me over. The hermes shop reminds me of a much less expensive, much more useful version of the Balenciaga Metallic Crocodile Wristlet we’ve talked about recently. I’d choose the Bal in a second, but since I don’t think my credit card limit is that high, the Mulberry version seems like a fun substitute that might actually hold some of my stuff. Buy through ShopBop for $1250.
