European companies’ results show they’re navigating US tariffs a lot better than anticipated — a good omen for next year when they’re expected to deliver double-digit profit growth.
A Goldman Sachs Group Inc. basket of European stocks most exposed to tariffs outperformed the broader market in October after trailing for most of the year. The basket, including companies like Legrand SA, BMW AG and Adidas AG, rallied about 6% as the earnings season unfolds, twice the gains of the Stoxx Europe 600 and three times those of domestically tilted equities.
“In truth, the impact of tariffs has so far been somewhat negligible for European companies except some rare exceptions,” said Nicolas Domont, a fund manager at Optigestion in Paris.
Tariffs or not, the US has driven sales growth at a slew of the region’s companies, from Hermes International SCA and Unilever Plc to Galderma Group AG, ABB Ltd. and Haleon Plc. That’s setting the stage for next year when consensus expectations are for Stoxx 600 companies’ earnings per share to grow 12%, according to data compiled by Bloomberg Intelligence.
In the latest quarter — the first period when Trump’s tariffs were in place — several companies credited growth in the Americas for their ability to beat analysts’ estimates and raise their outlook.
Birkin bag maker Hermes racked up a whopping 14.1% jump in sales in the region that includes the US. Unilever credited strong North American demand for its better-than-expected sales. Swiss skincare giant Galderma raised its outlook for the year citing strong US sales.
“Tariffs are testing profit resilience worldwide — and so far, companies are managing to adapt,” wrote Bloomberg Intelligence equity strategist Gillian Wolff. “Europe’s exporters have trimmed expenses to offset higher energy prices and the bite of tariffs.”
Unilever is a case in point. Growth in North America for the maker of Hellmann’s mayonnaise was led by demand for personal care items such as Dove soap and premium products like K18 hair care and Nutrafol supplements. Unilever said it’s cutting costs to avoid pushing up prices and forcing consumers toward cheaper brands.
“We continue delivering significant volume growth in the US,” said Chief Executive Officer Fernando Fernandez.
President Donald Trump’s administration has slapped a 15% tariff on goods imported from the European Union, 10% from the UK and 39% from Switzerland, in addition to sectoral levies on industries like steel.
European pharmaceutical companies like Novartis AG, GSK Plc and Roche Holding AG have been in talks with the US government on cutting drug prices and have pledged billions in investments for a reprieve on looming sectoral tariffs. UK peer AstraZeneca Plc struck a deal in October.
Companies’ efforts to mitigate the impact of tariffs has forced investors to cover their shorts or jump back into exporters. The tariff issue has dropped off the radar and comes up less and less on earnings calls, Bloomberg analysis shows. Transcripts show EU companies are optimistic on the outlook, less worried about tariffs and positive on AI efficiency gains, a Barclays report on Friday said.
“We passed peak uncertainty in April when Trump announced tariffs which were well above expectations,” said Ariane Hayate, a fund manager at Edmond de Rothschild Asset Management. “What’s really reassuring is the speed at which companies have adapted to tariffs and have been able to announce shift of production to other countries or the US, like for the pharmaceutical companies, but also smaller consumer goods maker.”
Cetaphil maker Galderma raised its full-year growth target on optimism about the US market, where it has committed to spend more than $650 million on manufacturing through 2030. Carmaker Stellantis reported a 13% jump in net revenue in the third-quarter aided by a recovery in North America, where the Jeep and Ram owner updated its offering and worked down inventory. It has pledged to invest $13 billion in the US over the next four years.
Purveyors of luxury, including LVMH Moët Hennessy Louis Vuitton SE and Gucci owner Kering SA reported growth in North America, suggesting a possible end in the downward spiral in the demand for high-end goods. Elsewhere, sales unexpectedly grew in North America for the UK’s Haleon, fueled by products like Sensodyne toothpaste and Tums antacid. Swiss automation technologies provider ABB saw orders soar on AI demand, and said it hasn’t seen any material impact on demand or profitability from US tariff-related uncertainties.
Granted, not all companies have been spared. Spirits makers like Remy Cointreau SA and Pernod Ricard SA, forced to make their Cognac in the region that gives the beverage its name, have signaled a weaker-than-expected US recovery. Tiremaker Michelin has warned that it sees its North American struggles lasting into next year, while French cosmetics maker L’Oreal reported weakness in the US.
“There’s a narrative growing along the lines that the tariffs are manageable, that they won’t hurt that much but I think it’s too soon to tell,” said Gilles Guibout, head of European equities at AXA IM. “There was a very positive surprise on pharmaceuticals, for instance, but the dust hasn’t settled yet. These things take time to implement and to kick in. My take? To be continued! Let’s not forget that there’s also the FX impact on earnings that will gradually percolate through.”
Walmart CEO Doug McMillon will retire next year after more than a decade at the helm, capping a period when he reshaped the big-box retailer into a technology-driven powerhouse whose shares have consistently outperformed the broader market.
John Furner – Reuters
McMillon, 59, will be replaced by U.S. division chief CEO John Furner, 51, a veteran with three decades at the company, Walmart said.
Walmart’s shares cut earlier losses to trade down about 0.6%. McMillon’s decision to step down came sooner than anticipated, though his tenure at the time of his expected Jan. 31 retirement makes him one of the longest-serving CEOs in company history.
“Given that Mr. McMillon was unequivocally Walmart’s best CEO since the company’s founder in Sam Walton … the announcement will likely cause some anxiety by shareholders, particularly since the change was a bit earlier-than-anticipated,” said Chuck Grom, an analyst with Gordon Haskett.
Walmart said in a statement McMillon’s retirement was a planned transition.
McMillon took over from Mike Duke in February 2014, when the company was playing catch-up to online sales giant Amazon.com that was quickly capturing a lion’s share of the booming consumer demand for e-commerce.
McMillon tapped into the company’s vast store footprint to speed up deliveries, incorporate automation technology at warehouses, and expanded its marketplace and advertising business to boost income.
Since he took the job, Walmart’s value has more than tripled to its current $817 billion as he ramped up e-commerce efforts.
When he took over, the company’s global e-commerce sales had just surpassed $10 billion; in its most recent fiscal year ended in January, that figure had surpassed $120 billion.
“Walmart has performed very well under Doug’s tenure,” said Neil Saunders, Managing Director of Retail at GlobalData.
“It has become a way more influential e-commerce player, has integrated new technologies to improve efficiency, and has pushed into new areas like retail media.”
McMillon will continue as an adviser through Jan. 31, 2027. The Bentonville, Arkansas-based retailer’s stock has risen 323% since he took over, outperforming the S&P 500 index.
McMillon, who joined Walmart in 1984 as an hourly associate, has served in leadership roles at all three Walmart divisions: U.S., International and Sam’s Club. He rose through the ranks to become CEO of Walmart in February 2014, replacing Mike Duke.
Furner has followed a similar career trajectory at the country’s largest private employer, joining as an hourly associate, and also heading Sam’s Club and Walmart U.S. in his three decades at the company. “Furner is taking over one of the most desirable seats in corporate America and, in our view, just needs to continue to execute against the game plan they have already put in place,” said Truist Securities analyst Scot Ciccarelli.
He takes the helm as Walmart starts to adopt artificial intelligence tools that are changing how retailers operate and interact with customers.
Furner was “uniquely capable of leading the company through this next AI-driven transformation,” McMillon said in a statement.’
The list of people who have held Walmart’s top job since its 1962 founding is a short one; Furner will be only the sixth person to lead the company, with each of the previous CEOs lasting six years or more.
“Doug McMillon has been a terrific CEO, leading Walmart’s transformation into an even bigger and stronger retail powerhouse fueled by technology,” said Joseph Feldman, an analyst with Telsey Advisory Group.
“John Furner is the logical choice to be the next CEO. He is a lifer at Walmart who started as an hourly associate in 1993, so he is a good cultural fit.”
The move is the latest in a string of leadership changes sweeping through retail as companies tackle tariff pressures, an uncertain economy and choppy consumer spending. Kohl’s, Kroger, and Target have named new CEOs this year.
Footwear label Autry is set to mark the opening of its new Milan flagship with a cultural moment during Milano Music Week, transforming its San Babila boutique into a hybrid listening bar and club for a one-night event.
Autry marks Milan flagship opening with Music Week installation. – Autry
As an official partner of Milano Music Week, Autry will reveal a mirrored box installation, in Piazza San Babila, which will project a digital countdown for two days, leading up to the event.
Then, at 6 p.m. on November 18, the cube is scheduled to open and reveal sets from an international lineup of DJs. Miami-based duo Miguelle & Tons will headline alongside Italian DJ and producer Silvie Loto. Mosa Klub and Mario Agliata will open and close the night.
The square will transform into an inclusive listening bar and open-air club, where guests will be offered silver-wrapped bites and custom cocktails, in line with Autry’s deep and intrinsic links with music and culture.
“Milan embodies the spirit of design and creativity that defines Autry’s DNA. As a partner to Milano Music Week, Autry’s one night only celebrates the city’s energy, our new flagship store, as well as a shared rhythm, one that connects people through emotion, culture, and style, true to the brand’s values of creativity and community,” said Roberta Benaglia, CEO of Style Capital and executive chairwoman of Autry.
Autry’s San Babila flagship opened in October and reflects the brand’s cosmopolitan identity and enduring ties to sport and style.
The deal marks the first time the beauty giant has invested in a Latin American brand, a move that signals its growing focus on local entrepreneurship and innovation. The investment was made through Estée Lauder’s New Incubation Ventures arm, which focuses on emerging beauty brands and new business models poised to influence the future of the industry.
“Fragrance excellence and craftsmanship are at the heart of The Estée Lauder Companies, and they drive our passion for discovering new voices in beauty,” said Stéphane de La Faverie, president and chief executive officer, The Estée Lauder Companies.
“Mexico has become a vibrant hub of fragrance innovation — a place where craftsmanship and cultural relevance come together in remarkable ways. Xinú embodies this spirit, redefining contemporary luxury through authenticity, artistry, and storytelling. As a minority investor, we are proud to support Xinú as it continues to grow and share the rich creativity and spirit of Mexico and Latin America with the world. This investment reflects our deep belief in the region’s extraordinary talent and our ongoing commitment to nurturing emerging brands that are shaping the future of fragrance and beauty.”
Founded in 2017, Xinú is recognized for its sensorial retail spaces, sustainable design ethos, and products that honor heritage while reimagining modern luxury. The brand is led by three founders whose combined expertise forms Xinú’s distinct identity.
Verónica Peña leads the olfactory vision, while Ignacio Cadena brings a bold aesthetic that defines the brand’s visual language. Lastly, Héctor Esrawe, one of Latin America’s most celebrated industrial designers, contributes a meticulous eye for detail and an avant-garde sensibility that reinforces the brand’s authenticity.
“This investment represents a significant milestone for Xinú and marks the beginning of a new chapter for our brand — a pivotal moment where our unique vision for a fragrance company meets global possibility,” said Peña.
“Together with The Estée Lauder Companies, we can boldly move forward in our aim to push the boundaries of what fragrance can be: a medium of storytelling, a vessel for culture, and a deeply human experience that transcends borders.”
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