Europe markets open lower ahead of ECB decision; Siemens Energy jumps 12% on upgraded forecast

Luxury group Hermès reported higher revenue as U.S. sales grew strongly in the first quarter, though slightly missed analyst expectations.

Revenue rose 7% year-on-year on a constant currency basis to 4.1 billion euros ($4.65 billion). That was just shy of a 7.6% consensus estimate cited by Citi analysts.

Citi called the results “a respectable outcome.”

Growth was driven by an 11% hike in sales in the Americas, along with a 13% rise in Europe excluding France, 14% in France, 17% in Japan and 14% growth in regional sales including the Middle East.

The Birkin bag-maker’s key leather goods and saddlery division grew 10%, while watches tumbled 10% and perfume and beauty was flat.

“In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,” it said in a statement.

Hermès earlier this week overtook fellow French behemoth LVMH as the world’s largest luxury firm by market capitalization, after the latter reported an unexpected sales decline for the first quarter.

As of Wednesday, Hermès’ value stood at 249.5 billion euros to LVMH’s 242.7 billion euros, according to FactSet data.

Shares of Siemens Energy popped 6.5% in premarket deals, according to Reuters, after the power firm upgraded its outlook for fiscal 2025 after the market close on Wednesday.

The company said it expected comparable revenue growth of 13% to 15%, up from prior guidance of 8% to 10%. It now sees a profit margin before special items of 4% to 6%, up from 3% to 5%, and net income of “up to” 1 billion euros ($1.13 billion), previously guided to be “around break-even.”

The preliminary quarterly results also showed revenue up 20.7% year-on-year to 9.96 billion euros and profit of 615 million euros. Both were ahead of company-compiled consensus expectations of 9.3 billion and 372 million, respectively. 

After languishing since its spin-off from parent company Siemens in 2020 amid troubles in its wind turbine unit, Siemens Energy saw a stunning share rally through 2024 on expectations of increased electricity demand to fuel the artificial intelligence boom.

However, it was rocked earlier this year by debate over whether Chinese startup DeepSeek could create AI models more cheaply and with less-powerful chips. The New York Times reported Wednesday that the White House was considering blocking DeepSeek from buying U.S. tech and barring Americans from accessing its services.

U.S. importers are receiving an increase in canceled sailings by freight ships coming out of China, resulting from a pullback in orders driven by President Donald Trump’s tariff policies.

Freight company HLS Group recorded a total of 80 canceled sailings out of China, and wrote in a note to clients that carriers have started to suspend or adjust transpacific services amid the U.S.-China trade war. The impact of the diminished freight container traffic to North America will impact links in the economy and supply chain, including the ports and logistics companies moving the freight.

China now faces up to a 245% tariff on imports to the U.S., the White House said on Tuesday, although that excludes several electronic devices after Trump’s latest tariff exemption. Beijing said last week raised its levies on U.S. goods to 125%.

Read more here for what freight experts told CNBC.

— Lori Ann LaRocco, Pia Singh

European markets are expected to open in negative territory Thursday.

The U.K.’s FTSE 100 index is expected to open 39 points lower at 8,230, Germany’s DAX down 48 points at 21,255, France’s CAC 38 points lower at 7,289 and Italy’s FTSE MIB 97 points lower at 35,061, according to data from IG.

Traders are awaiting the latest monetary policy decision from the European Central Bank. Earnings come from ABB, OVH, Pernod Ricard, Hermes, Deliveroo, Sainsbury’s, Forvia and L’Oreal.

— Holly Ellyatt