Hermès Shares Drop Nearly 3% and Continue Their Slide, Down 32% Over the Year
Hermès International records the largest decline in the CAC 40 during the session, in a Parisian market trending downwards. The luxury house is intensifying its medium-term downturn as the luxury sector remains under pressure.
Hermès the Laggard of the CAC 40, Luxury Takes Another Hit
Hermès International shares fell by 3.12% to €1,599.00 mid-morning, marking the steepest decline in the CAC 40, which itself fell by 1.06%. The luxury sector followed suit, with LVMH down by 1.56%, Christian Dior by 1.51%, and Kering by 2.06%. The stock thus extends its medium-term slide, with a decline of 22.45% over three months and 32.62% over a year, as the pressure on luxury exposed to China remains unrelenting. The sectoral situation remains rather unfavorable: jewelry and gold sales in China fell by 21.3% year-on-year in April according to the NBS, while the business climate in France significantly worsened, with a composite PMI dropping to 43.5 in May, the lowest since November 2020.
Below All Moving Averages, the €1,571.50 Support Once Again Threatened
Today's decline brings the price below the 20-day moving average (MM20) of €1,616.88, a gap of 1.11%, after several sessions hovering around this threshold. In the longer term, the outlook remains bleak: the 50-day moving average (MM50) is at €1,674.63, approximately 4.5% above the current price, and the 200-day moving average (MM200) peaks at €1,995.24, nearly 20% higher. The RSI at 51 indicates a market without strong directional bias in the short term, but the stock is now approaching its support at €1,571.50, which was briefly breached on May 20th, dropping to a low of €1,563.50. Based on the earnings per share expected by analysts, the stock is trading at about 35.8 times the earnings for the current fiscal year according to the consensus of surveyed analysts. During the announcement of the annual results for 2025 on February 11, 2026, Hermès confirmed an ambitious target for medium-term constant-rate revenue growth. The behavior of the price around €1,571.50 will be a technical benchmark for the upcoming sessions.
