The CAC 40 Index has tried to recover over the past few days, rising from this month’s low of 7,682 points to 7,956 points today. Even so, it remains 9.10% below its highest level this year. This article looks at some of the top French stocks to watch this week.
Hermes International
Hermès International, the maker of Birkin, Kelly, and Constance bags, will be the top French company to watch this week as it releases its financial results on Tuesday. These numbers come at a time when its stock has remained in a bear market. It ended last week at €1,337, down by 54% from its highest point last year.
The ongoing sell-off has coincided with that of other companies in the luxury goods industry. LVMH stockhas slumped by over 52% from its all-time high, while Kering and Burberry have fallen by 68% and 55%, respectively.
These stocks have retreated because of the ongoing weakness in China and the Middle East, where demand has softened in the past few years. The most recent results showed that Hermes’ revenue rose by 6% in the first half to €8.2 billion, with Asia, Japan, Americas, and Europe experiencing modest growth.
EssilorLuxottica
Essilor is the biggest company in the eyewear in the world, owning brands like Ray-Ban, Oakley, Persol, Vogue, and Costa Del Mar. The company has a commanding market share, which continues to grow despite the rising competition.
Essilor’s stock will be in the spotlight this week as it releases its financial results. These numbers come at a time when it has slumped by 51% from its all-time high. The decline is partly because of the ongoing succession issue, where the heirs are competing for its leadership.
The most recent results showed that Essilor’s revenue rose to €14.8 billion, from €14.02 billion in the same period last year. This growth was driven by its direct-to-consumer business, which made €8 billion. Its professional solutions made €6.8 billion. The upcoming results will provide more color on what to expect later this year.
L’Oreal
L’Oreal is a top player in the fast consumer goods industry, where it owns some of the biggest brands in the industry. Its brands are housed in four key segments, including Professional products, consumer products, luxe, and dermatological. Some of its top brands include Lancome, Valentino, and Yuesai.
L’Oreal will be in the spotlight this week as it releases its financial results. These numbers come at a time when its stock is rising. It jumped to €407 on Friday, its highest level since June 2024 and up sharply from its lowest level this year.
The most recent results showed that L’oreal made over €23.7 billion in revenue in the year’s first half, up by 6.8% from the same period last year. This growth was spread across all divisions and across all regions. The company is also benefiting from its investments in the e-commerce industry. As such, investors will want to see whether this growth continued last quarter.
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