The CAC 40 has clawed back some ground over the past few sessions, climbing from a monthly low of 7,682 points to around 7,956 points. Despite the bounce, the index remains roughly 9% below its 2024 peak. This week, attention turns to a trio of heavyweight French companies—Hermès, EssilorLuxottica, and L'Oréal—all set to publish their latest financial results.
Hermès: Luxury demand under scrutiny
Hermès International, known for its Birkin and Kelly bags, will report earnings on Tuesday. The stock has been in a prolonged downturn, closing last week at €1,337, down about 54% from its all-time high. The decline mirrors broader weakness across the luxury sector, with LVMH down over 52% from its peak, while Kering and Burberry have fallen 68% and 55%, respectively.
The sell-off stems largely from softening demand in China and the Middle East. In the first half, Hermès revenue grew 6% to €8.2 billion, with modest gains across Asia, Japan, the Americas, and Europe. Investors will look for signs whether that momentum has held in the third quarter.
EssilorLuxottica: Eyewear giant faces leadership questions
EssilorLuxottica, the world's largest eyewear company, owns brands like Ray-Ban, Oakley, and Persol. Its stock has dropped 51% from its record high, partly due to an ongoing succession dispute among heirs vying for leadership. The company's last reported revenue rose to €14.8 billion from €14.02 billion a year earlier, driven by its direct-to-consumer segment, which generated €8 billion, while professional solutions contributed €6.8 billion.
The upcoming results will offer clarity on whether growth has continued and how the company plans to navigate its governance challenges.
L'Oréal: Beauty giant on the rise
L'Oréal, a leader in fast-moving consumer goods, owns brands such as Lancôme, Valentino, and Yuesai across four divisions: professional products, consumer products, luxe, and dermatological. Unlike its peers, L'Oréal's stock has been climbing, reaching €407 on Friday—its highest level since June 2024 and well above its yearly low.
In the first half, the company posted revenue of over €23.7 billion, up 6.8% year-over-year, with growth across all divisions and regions. Its e-commerce investments have also paid off. The market will be watching whether that growth persisted in the latest quarter.
These earnings come at a time when the broader market is reassessing growth prospects, particularly in sectors tied to consumer spending. The results from these three companies will provide a clearer picture of the health of the French and European consumer markets.
This article is for informational purposes only and does not constitute financial advice.
