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Investors with an interest in Consumer Products - Staples stocks have likely encountered both National Vision (EYE) and Hermes International SA - Unsponsored ADR (HESAY). But which of these two stocks is more attractive to value investors?

Hermes consistently outperforms luxury peers, posting resilient growth and margin expansion despite macro and FX headwinds. In 2025, HESAF achieved 9% constant-currency revenue growth and expanded both gross and operating margins, driven by favorable geographic and product mix. Despite industry-leading fundamentals, HESAF trades at a prohibitive 45x forward earnings—over 2x the S&P 500—making valuation a key concern.

Hermès International remains overvalued, trading at P/E 52.8 and P/FCF 57.7, requiring unsustainable growth to justify current multiples. Recent fiscal 2025 results show 5.5% revenue growth and 3% FCF growth, far below the ~18% annual growth needed for fair value. Share buybacks and margin improvements could add ~3% to growth, leaving Hermès reliant on top-line expansion far above market expectations.

Hermès International Société en commandite par actions (HERM:CA) Q4 2025 Earnings Call Transcript

Hermès sales grew in the fourth quarter on strong demand for its coveted Birkin bags, chalking up gains across all markets and most of its products. Deborah Aitken of Bloomberg Intelligence has the details.