Author: Fiona Craig

Hermès International S.A. (EU:RMS) reported third-quarter sales largely in line with expectations, underscoring steady demand for high-end luxury despite a broader consumer slowdown. But a tepid rebound in China and a slight miss in its key Leather Goods & Saddlery unit weighed on investor sentiment.

Revenue reached €3.88 billion ($4.50 billion) for the quarter ended September 30, representing a 9.6% year-on-year increase at constant exchange rates. That was slightly higher than the 9% growth seen in the previous quarter, though just shy of the €3.90 billion analysts expected, according to Visible Alpha.

The company highlighted a modest improvement in China—its biggest market, accounting for roughly a third of global luxury demand—echoing similar stabilization signals from LVMH Moët Hennessy Louis Vuitton (EU:MC) and L’Oréal S.A. (EU:OR).

“One could note a very slight improvement in the third quarter,” said finance chief Eric de Halgouet, citing firmer property prices in major cities and stronger equity markets.

Hermès shares fell 2.5% in Paris following the update.

In the U.S., the company reported increased store traffic and balanced growth across regions. It plans further investment in the market after opening a new boutique in Nashville.

Jefferies analysts noted that Hermès’ 9.6% Q3 sales growth “will likely generate a debate amongst investors.”

“This at a time when the shares have suffered a major sector relative derating (of over 50% since mid-April), with markets increasingly enthused about a reboot of broader industry demand reinterpreting the consistency of RMS’ share gains as unexciting,” they added.

Hermès reiterated its medium-term revenue growth target at constant exchange rates but warned that macroeconomic, geopolitical, and monetary uncertainty continues to shape the global outlook.

Leather goods—including the iconic Birkin, Kelly, and Constance handbags—rose 13.3% year-on-year in Q3, slightly below the 14% consensus forecast from RBC Capital Markets.

“We believe shares might be under pressure near term, given the slight miss in key Leather Goods division, and elevated buy-side expectations reflecting more positive sentiment in luxury recently,” wrote RBC analyst Piral Dadhania.

Sales in clothing, silk accessories, and jewelry also increased during the quarter, contributing to overall top-line growth.

FTSE 100 rose on Wednesday morning, supported by steady September inflation figures and a flurry of corporate earnings, including results from Barclays and Reckitt Benckiser Group.

By 07:38 GMT, the FTSE 100 was up 0.6%, while the British pound slipped 0.3% to 1.33 against the U.S. dollar. In contrast, Germany’s DAX dipped 0.1%, and France’s CAC 40 declined 0.5%.

UK inflation steady at 3.8%

U.K. inflation remained at 3.8% in September — the same level as in July and August — and below the 4.0% figure expected by economists. The figure is still nearly double the Bank of England’s 2% medium-term target.

In a separate development, a major cyberattack on Jaguar Land Rover was estimated to have caused £1.9 billion in damage to the UK economy, according to the Cyber Monitoring Centre. The late-August attack forced the automaker to shut down IT systems and suspend production at several plants for five weeks.

Corporate earnings highlights

• Barclays PLC (LSE:BARC) shares rose after the bank raised its full-year guidance and announced a new share buyback alongside its third-quarter earnings. It now expects a return on tangible equity (RoTE) above 11% in 2025, up from around 11% previously, after posting a 10.6% RoTE for the quarter.
• Reckitt Benckiser Group PLC (LSE:RKT) reported stronger-than-anticipated Q3 sales, with like-for-like revenue rising 7% — ahead of the 6.4% forecast. Growth was fueled by emerging markets and improving trends in developed economies.
• Halfords Group PLC (LSE:HFD) surged 7.2% after reporting better-than-expected sales for the first half of its fiscal year. Like-for-like sales rose 4.1%, with Retail up 4.0% and Autocentres up 4.3%.
• abrdn plc (LSE:ABDN) said assets under management and administration (AUMA) climbed to £542.4 billion, up 6% year to date, supported by strong growth in its Interactive Investor platform, which gained 20,000 customers through the Jarvis acquisition.
• Fresnillo plc (LSE:FRES) met expectations on Q3 output, with gold production trending toward the upper end of guidance. Silver production fell 6.6% quarter-on-quarter and 19.1% year-on-year.
• Softcat plc (LSE:SCT) posted record annual results with gross profit up 18.3% to £494.3 million and underlying operating profit up 16.9% to £180.1 million.
• Quilter plc (LSE:QLT) reported core net inflows of £2.2 billion in Q3, up 48% year-on-year, lifting total assets under management and administration to £134.8 billion.
• Hochschild Mining plc (LSE:HOC) said attributable production fell to 70,308 gold equivalent ounces from 81,660 ounces in Q2, as its turnaround plan at Brazil’s Mara Rosa mine continues.

The mix of steady inflation data and upbeat earnings from major companies helped lift the FTSE 100 in early trading, though headwinds from global markets capped further gains.

ITV plc (LSE:ITV) fell sharply in Wednesday morning trading, sliding 8.8% after Liberty Global reduced its holding in the British broadcaster by 50% through an accelerated bookbuild.

Liberty Global’s wholly owned subsidiary, Liberty Global Ventures Limited, sold 193,365,540 ordinary shares to institutional investors, equivalent to about 5% of ITV’s issued share capital.

The transaction generated gross proceeds of roughly £135 million for Liberty Global. Following settlement, its stake in ITV will be cut from around 10% to 5%. The seller also agreed to a 60-day lock-up period, during which it will not sell any additional shares in ITV, subject to standard exceptions.

BNP Paribas and Deutsche Bank (Deutsche Numis) acted as joint global coordinators and bookrunners for the offering.

The sizable divestment by a key shareholder added selling pressure to ITV’s stock price, fueling the day’s sharp drop. Liberty Global’s move to halve its position could also prompt speculation about its long-term strategic interest in the British media company.

Hochschild Mining PLC (LSE:HOC) has reported its Q3 2025 production results, confirming steady progress toward meeting its revised annual production goals. The company expects stronger cash flow in Q4 as production ramps up at the Mara Rosa project, supported by favorable metal prices.

Operational improvements and leadership changes — including the appointment of a new COO — are expected to further enhance performance. Despite some short-term setbacks, Hochschild reiterated its commitment to meeting annual guidance, focusing on processing lower-grade material efficiently to maintain strong profit margins.

The company’s outlook is supported by strong technical momentum and solid financial performance, even amid some earnings and cash flow volatility. Valuation remains fair, though the low dividend yield could make the stock less attractive to income-focused investors. The latest earnings call reflected cautious optimism, balancing growth prospects with operational challenges.

More about Hochschild Mining

Hochschild Mining PLC is a leading precious metals producer specializing in the exploration, mining, and sale of gold and silver. The company operates several key mines, including Inmaculada and San Jose, with a focus on sustainable, efficient mining practices and long-term resource development.

Fresnillo PLC (LSE:FRES) has released its third-quarter production report, highlighting a mixed performance across its operations. Silver output declined due to lower ore grades and the cessation of mining at the San Julián DOB site. In contrast, gold production increased year-to-date, supported by strong performance at the Herradura mine.

The company reaffirmed its full-year production guidance, with gold expected to reach the upper end of the forecast range. Fresnillo aims to leverage strong precious metals prices through operational efficiency and a continued focus on safety.

The company’s solid financial performance and positive earnings call sentiment are key drivers of its stock outlook. Robust cash flow and efficient operations provide a strong foundation, even as valuation concerns and technical indicators hint at possible overbought conditions.

More about Fresnillo

Fresnillo PLC is one of the world’s largest primary silver producers and a significant gold producer. Headquartered in Mexico, the company operates several major mining sites and plays a key role in the global precious metals market, focusing on sustainable operations and long-term resource development.

SRT Marine Systems PLC (LSE:SRT) has reported a dramatic 426% increase in revenue to £78.0 million for the year ended 30 June 2025, fueled by the launch of multiple system projects. The company has secured £325 million in system contracts and built a new pipeline worth £1.8 billion, underscoring growing global demand for its maritime surveillance solutions.

Key operational milestones include the deployment of the SRT-MDA System with five sovereign customers and major investment in AI-driven system enhancements. SRT also announced the award of a new contract valued at approximately US$200 million from a sovereign client, pending final project and financing agreements. In addition, the company is advancing its NEXUS data and voice transceiver and exploring new opportunities in digital onboard navigation and related technologies.

SRT’s strategic emphasis on AI and integrated systems positions it strongly within the global maritime surveillance market, with management expecting further growth ahead.

While the company shows strong operational momentum and positive technical indicators, financial instability and valuation uncertainties remain key concerns, tempering the overall outlook.

More about SRT Marine Systems

SRT Marine Systems PLC is a global leader in developing and delivering integrated maritime surveillance, monitoring, management, and safety solutions. Its systems support coast guards, fisheries authorities, critical infrastructure operators, and vessel owners in areas including security, safety, search and rescue, law enforcement, fisheries management, illegal fishing detection, and environmental monitoring.

Barclays (LSE:BARC) has delivered a solid third-quarter performance for 2025, reporting a return on tangible equity (RoTE) of 10.6%. The bank also unveiled a £500 million share buyback program, reinforcing its commitment to shareholder returns and strategic growth.

Management highlighted that the company remains firmly on track to meet its 2025 guidance and 2026 targets, reflecting strong financial execution and strategic positioning within the financial services sector.

Barclays’ strong performance and positive earnings call sentiment are key drivers of its outlook. Technical indicators point to a bullish trend, and valuation metrics suggest the stock is attractively priced. Although some cash flow volatility and external market challenges persist, the overall sentiment remains favorable.

More about Barclays

Barclays PLC is a leading global financial services group offering retail banking, credit cards, corporate and investment banking, and wealth management services. The company operates across multiple regions, serving individuals, businesses, and institutions with a comprehensive portfolio of financial products.

Softcat plc (LSE:SCT) has announced record financial results for the fiscal year ended 31 July 2025, with strong growth across all major performance indicators. Gross invoiced income climbed 26.8%, while gross profit rose 18.3%, supported by robust base business activity and significant larger solutions projects.

In a key strategic move, the company completed its first acquisition — Oakland, a data and AI consultancy — bolstering its capabilities in a fast-growing segment. Softcat is also investing in IT infrastructure, digital projects, and new systems to strengthen its future growth potential. The company ended the year with a strong cash position and announced an increased dividend, reflecting confidence in its financial strength.

Looking ahead to FY2026, Softcat expects operating profit growth to be weighted toward the first half of the year as it continues to capture market share and deliver large-scale projects.

The company’s outlook remains favorable, supported by strong financial performance, low leverage, and prudent management. However, neutral technical indicators and a relatively high valuation suggest limited short-term upside despite its strong fundamentals.

More about Softcat

Softcat plc is one of the UK’s leading providers of IT infrastructure products and services. The company delivers solutions across a wide range of technologies and customer segments, with a growing focus on data, automation, and AI to meet evolving enterprise and public sector needs.

Aberdeen Group PLC (LSE:ABDN) has reported a 6% year-to-date increase in assets under management and administration (AUMA), reaching £542.4 billion. This growth has been supported by strong performance on its interactive investor platform and favorable market movements.

The company also recorded a notable rise in customer acquisition and trading activity, coupled with improved service levels and higher net promoter scores across its divisions. These gains have strengthened Aberdeen’s market position and support its progress toward achieving its 2026 strategic targets.

The company’s outlook is underpinned by strong financial performance, solid profitability, and a robust balance sheet with low leverage. Its attractive valuation, reflected in a low P/E ratio and high dividend yield, enhances its appeal to both value and income investors. While technical analysis signals some short-term softness, the longer-term trend remains positive.

More about Aberdeen Group

Aberdeen Group PLC operates within the wealth and investment management sector, offering services in asset management and financial advisory. The company is focused on expanding its customer base and enhancing its product portfolio to maintain a strong competitive position in the market.

CyanConnode Holdings (LSE:CYAN) has reported a strong trading update for the first half of FY2026, driven by a landmark contract win in Goa, India, valued at approximately £70 million. Revenue rose 31% year-on-year to £7.4 million despite currency translation headwinds, with growth supported by the continued rollout of smart metering projects across India and other regions.

During the period, the company shipped 893,000 Omnimesh Modules in India, demonstrating strong operational execution. With an order book of £157 million and the Goa AMISP project set to commence soon, CyanConnode is well-positioned to sustain its growth trajectory and expand its market reach. The company’s strategic emphasis on India, backed by a healthy project pipeline, underpins its positive revenue outlook.

While CyanConnode faces financial pressures from negative profitability and cash flow issues, recent contract wins and funding initiatives strengthen its medium-term prospects. Technical indicators suggest bearish momentum, and valuation reflects ongoing financial constraints, underscoring the need to improve its financial health to enhance investor appeal.

More about CyanConnode Holdings

CyanConnode Holdings plc is a global provider of IoT communication and smart metering solutions. Through its subsidiary DigiSmart Networks Private Limited, the company delivers advanced metering infrastructure services across India, with additional operations in international markets. CyanConnode plays a key role in large-scale smart meter deployments, offering robust communication systems to support energy efficiency and digital transformation initiatives.