Hermes International (XSWX:RMS) Operating Income: CHF6,264 Mil (TTM As of Dec. 2025)

What is Hermes International Operating Income?

Hermes International XSWX:RMS 98 Operating Income is CHF6,264 Mil as of Dec. 2025. GuruFocus rates XSWX:RMS with a GF Score™ of 98/100 and a GF Value™ of CHF2,497.81. The stock has 1 warning sign investors should review.

Hermes International's Operating Income for the six months ended in Dec. 2025 was CHF3,078 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was CHF6,264 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hermes International's Operating Income for the six months ended in Dec. 2025 was CHF3,078 Mil. Hermes International's Revenue for the six months ended in Dec. 2025 was CHF7,434 Mil. Therefore, Hermes International's Operating Margin % for the quarter that ended in Dec. 2025 was 41.41%.

Good Sign:

Hermes International SA operating margin is expanding. Margin expansion is usually a good sign.

Hermes International's 5-Year average Growth Rate for Operating Margin % was 4.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hermes International's annualized ROC % for the quarter that ended in Dec. 2025 was 45.83%. Hermes International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 116.25%.

Hermes International (XSWX:RMS) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Hermes International's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

	ROC % (Q: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2025 )	+	Invested Capital (Q: Dec. 2025 ))	/ count )
=	6156.846 * ( 1 - 31.3% )	/	( (8345.852	+	10114.285)	/ 2 )
=	4229.753202	/	9230.0685
=	45.83 %

where

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	20473.506	-	2447.104	-	( 9680.55	-	max(0, 2992.051	-	13478.298	+	9680.55	))
=	8345.852

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	22695.787	-	1160.824	-	( 11420.678	-	max(0, 2972.978	-	14847.161	+	11420.678	))
=	10114.285

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Hermes International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2025 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2025		Q: Dec. 2025
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	6212.834	/	( ( (4378.336 + max(777.559, 0))	+	(5121.062 + max(411.514, 0)) )	/	2 )
=	6212.834	/	( ( 5155.895	+	5532.576 )	/	2 )
=	6212.834	/	5344.2355
=	116.25 %

where Working Capital is:

	Working Capital		(Q: Jun. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(432.394	+	2562.471	+	459.595)	-	(2447.104	+	0	+	229.797)
=	777.559

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(390.052	+	2402.831	+	288.339)	-	(1160.824	+	0	+	1508.884)
=	411.514

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Hermes International's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2025 )	/	Revenue (Q: Dec. 2025 )
	=	3078.423	/	7434.312
	=	41.41 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Hermes International Operating Income Related Terms

Hermes International Operating Income Historical Data

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The historical data trend for Hermes International's Operating Income can be seen below:

Hermes International Operating Income Chart

Hermes International Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Operating Income

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3,742.28

4,756.69

5,427.40

5,818.27

6,247.36

Hermes International Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
Operating Income	Get a 7-Day Free Trial															2,626.47	3,040.27	2,868.06	3,185.27	3,078.42

98GF Score

Hermes International SA XSWX:RMS

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

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Hermes International Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was CHF6,264 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of CHF6,264 Mil mean?

Hermes International (XSWX:RMS) has a Operating Income of CHF6,264 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Hermes International and its competitors.

Is Hermes International's Operating Income too high?

Hermes International's current Operating Income is CHF6,264 Mil. Overall, Hermes International has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.

How does Hermes International's Operating Income compare to TPR and SIG?

Hermes International's Operating Income of CHF6,264 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Retail - Cyclical company?

A good Operating Income depends on the Retail - Cyclical industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Hermes International and its competitors. Hermes International's current Operating Income is CHF6,264 Mil. 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?

Hermes International (XSWX:RMS) has a current Operating Income of CHF6,264 Mil. The stock's GF Value™ is CHF2,497.81, compared to a current price of CHF1,621.50 — trading 35.1% below its estimated fair value. The current Operating Income is CHF6,264 Mil. Hermes International's overall GF Score™ is 98/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Hermes International (XSWX:RMS), the current Operating Income is CHF6,264 Mil 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 (XSWX:RMS) Overvalued in 2026?

Based on GuruFocus' analysis, Hermes International stock appears to be undervalued. The current stock price of CHF1,621.50 is trading 35.1% below its estimated GF Value™ of CHF2,497.81.

Key valuation signals for XSWX:RMS:

Operating Income: CHF6,264 Mil
GF Value™: CHF2,497.81 vs. price of CHF1,621.50 (35.1% below fair value)
GF Score™: 98/100 with 1 warning sign

No single metric tells the full story. See the XSWX:RMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hermes International Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies XPAR:MC XPAR:CDI XPAR:KER XPAR:DPT XPAR:MLODT XSWX:CFR NSE:TITAN TPR XSWX:UHR HKSE:01929 HKSE:01913 HKSE:06181 OCSE:PNDORA MIL:BC LSE:BRBY BOM:543278 SIG SZSE:301071 SHSE:600655 SHSE:600612

Other Exchanges HESAY:USA HESAF:USA RMS N:Mexico RMSp:UK 0HV2:UK RMS:France HMI:Germany HRMS:Canada HERM:Canada

Address 24 rue du Faubourg Saint Honore, Paris, FRA, 75008

Website https://www.hermes.com

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.

98GF Score

Get the complete analysis for XSWX:RMS

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF1,621.50

Price

CHF2,497.81

GF Value

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