Hermes InternationalHESAF +0.80%91 Gross Margin % is 71.55% as of Dec. 2025, which is 2% above its 10-year median of 70.18. GuruFocus rates HESAF with a GF Score™ of 91/100 and a GF Value™ of $2,947.50 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,117 Retail - Cyclical companies, Hermes International ranks better than 94.18% on this metric.
The historical rank and industry rank for Hermes International's Gross Margin % or its related term are showing as below:
HESAF'
s Gross Margin % Range Over the Past 10 Years
Min: 67.67 Med: 70.18 Max: 72.29
Current: 71.11
During the past 13 years, the highestGross Margin % of Hermes International was 72.29%. The lowest was 67.67%. And the median was 70.18%.
HESAF's Gross Margin % is ranked better than 94.18% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs HESAF: 71.11
Hermes International had a gross margin of 71.55% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hermes International was 0.50% per year.
Hermes International (OTCPK:HESAF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Hermes International had a gross margin of 71.55% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Hermes International Gross Margin % Related Terms
Hermes International Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hermes International's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Luxury Goods subindustry, Hermes International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hermes International Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hermes International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hermes International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Hermes International (HESAF) has a Gross Margin % of 71.55% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hermes International and its competitors. This is near median its historical median of 70.18. Over the past decade, Hermes International's Gross Margin % has ranged from 67.67 to 72.29. According to the industry distribution chart, Hermes International ranks #65 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 5.8%.
Is Hermes International's Gross Margin % too high?
Hermes International's current Gross Margin % of 71.55% is near median its 10-year median of 70.18. Over the past 10 years, this metric has ranged from a low of 67.67 to a high of 72.29. The Retail - Cyclical industry median Gross Margin % is 36.23. Hermes International's value of 71.55% is 97.5% above this industry median. Based on the distribution chart, Hermes International ranks #65 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Hermes International has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hermes International's Gross Margin % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Hermes International ranks #65 out of 1117 companies for Gross Margin %. This places Hermes International in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.23. Hermes International's value of 71.55% is 97.5% above this benchmark. Historically, Hermes International's own Gross Margin % has ranged from 67.67 to 72.29 over the past decade. While the company's 10-year median is 70.18 vs. the industry median of 36.23, Hermes International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hermes International's current Gross Margin % of 71.55% is 97.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hermes International and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hermes International's current Gross Margin % is 71.55%, which is near median its own 10-year median of 70.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hermes International stock overvalued right now?
Based on GuruFocus' analysis, Hermes International (HESAF) is currently considered Significantly Undervalued. The stock's GF Value™ is $2,947.50, compared to a current price of $1,845.19 — trading 37.4% below its estimated fair value. The current Gross Margin % is 71.55%, which is near median its 10-year median of 70.18 and 97.5% above the Retail - Cyclical industry median of 36.23. Hermes International's overall GF Score™ is 91/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hermes International (HESAF), the current Gross Margin % is 71.55% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hermes International (HESAF) Overvalued in 2026?
Based on GuruFocus' analysis, Hermes International stock appears to be undervalued.
The current stock price of $1,845.19 is trading 37.4% below its estimated GF Value™ of $2,947.50.
GuruFocus considers Hermes International to be Significantly Undervalued.
Key valuation signals for HESAF:
Gross Margin %: 71.55% (near median its 10-year median of 70.18)
GF Value™: $2,947.50 vs. price of $1,845.19 (37.4% below fair value)
Industry Position: 97.5% above the Retail - Cyclical median (#65 of 1117)
No single metric tells the full story. See the HESAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hermès is over 180-year-old family controlled luxury goods company best known for its Birkin and Kelly bags. Its biggest segments are leather goods and saddlery, accounting for over 40% of revenue; clothes and accessories (28% of sales); silk and textiles (6%); and other products such as perfumes, watches, jewellery, and home furnishings. Hermès has about 300 stores globally.
91GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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