Hermes and Pernod good earnings and guidance.

Last week Hermes and Pernod came with strong numbers well spread in terms of products and geographies. Both groups demonstrated strong pricing power in a weak macro environment. Hermes published 2022 revenues up 22% well spread across the globe. Europe and Asia were up 22% and the US up 23%. Pernod also came with strong H1 revenues last week up 19% well diversified across all products. Both groups implemented price hikes ranging from high single to low double digit which did not impact volumes. Both groups are investing in new areas of growth.

They demonstrated an ability to identify new spots for growth like watches for Hermes up 43% and Lillet or Italicus brands for Pernod. Both management teams are reasonably upbeat for 2023 pointing out a significant upside from China re-opening.

ABNB reported strong numbers and upbeat guidance.

ABNB was hit in its core business by Covid in April 2020. Therefore, the company cut cost early. They cut their workforce by 5% and, unlike other big tech groups, refrained from hiring in the following years. The company is now an early and highly profitable growth tech story. Their comments on current booking trends are suggesting a very buoyant Spring and summer season for traveling.

Deere GAAP EPS of $6.55 beats by $1.10, revenue of $12.65B beats by $1.51B.

Net Sales rose 30% yoy. Deere raised FY23 net income guidance on very conservative assumptions for demand. Deere dealers are very optimistic about the level of tech adoption and demand for precision ag solutions as customers look to reduce expensive inputs, which improve profitability and sustainability. And this is not just a North American theme, but across the globe. In all products, dealers’ inventories are at historically low levels. Looking at final demand, no inventory rebuilding is expected this year.