Hermès Shares Drop 2.06% at Closing Amid Sector Pressure
Hermès International shares ended the session on Friday, January 16 at 2,190 euros, down 2.06% from the previous day's close of 2,236 euros. This correction occurs in a context of persistent tensions in the luxury sector, despite the inauguration of a new store in Hanoi on the same day, confirming the expansion strategy of the saddler in Asia.
Challenging Environment for Luxury Stocks
The decline in the stock is part of a difficult environment for luxury values since the beginning of the year. Concerns about Chinese demand and the high valuation of the sector weigh on prices. The share of capital traded remains low at 0.07%, indicating investor restraint. Over a week, the stock has nevertheless shown a progression of 2.48%, but remains down 6.98% over a year. The stock is now trading above its 20 and 50-day moving averages, positioned at 2,144.80 euros and 2,129.34 euros respectively, but remains under pressure from its 200-day moving average established at 2,223.14 euros, a threshold representing a medium-term technical resistance point. The RSI is at 78, indicating an overbought zone that suggests the stock could see consolidation after its recent rise. Several analysts have recently adjusted their recommendations in early January, like Oddo BHF, which lowered its price target from 2,264 to 2,200 euros with a neutral recommendation, reflecting uncertainties about the group's growth pace in the coming quarters.
New Store Opening in Hanoi
The group inaugurated its new store in Hanoi on January 16, located on Tràng Tiên Street in an Art Deco building, reinforcing its presence in Vietnam initiated in 2008. This opening reflects Hermès's desire to maintain its development in the Asian region, even though growth prospects in China remain uncertain. Technically, the stock shows a support at 2,082 euros and a resistance at 2,240 euros, a level it did not manage to surpass during this session. The MACD presents a positive signal with a line at 27.77 above its signal line at 13.04, suggesting that the underlying trend remains bullish despite occasional corrections. The upcoming annual results for 2025, expected on February 12, will be a key event to assess the group's ability to maintain its exceptional margins in a deteriorated sector environment. The consensus among analysts remains divided, with price targets ranging from 2,200 euros at Oddo BHF to 2,400 euros at Deutsche Bank, which maintains a buy recommendation.
