Hermès Shares Drop to a Two-Year Low of 1,675 Euros Amidst Challenging Conditions
Hermès International closed the trading session on Friday, March 20, at 1,675 euros, down 3.85% from the previous day. The stock hit a new two-year low, surpassing the previous bottom of 1,729 euros reached the day before. This decline is part of a significant downturn in the CAC 40, which fell 1.40% during the session.
By reaching 1,675 euros, Hermès International has broken below its previous support threshold of 1,742 euros, which is now invalidated. The stock is significantly below its 50-day (2,047 euros) and 200-day (2,140 euros) moving averages, indicating a bearish trend that has been established for several weeks. The RSI, having dropped to 20, signals a rarely observed oversold zone for this stock, indicative of the intensity of the selling movement. On this Friday, Oddo BHF lowered its price target from 2,200 to 1,928 euros, while maintaining a 'neutral' rating, in anticipation of a slowed first quarter. This new target still represents an approximate 15% upside from the closing price, but is considerably lower than the previous target. The cumulative decline now stands at 11.89% over seven days, 20.31% over three months, and 32.4% over one year.
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The session took place in a generally tense atmosphere on European markets. The CAC 40 was down 1.40% during the session, while the SBF 120 fell by 1.39%. The surge in oil prices, with Brent crude surpassing 107 dollars per barrel this Friday due to ongoing conflict in the Middle East, fuels fears of inflationary pressures likely to impact global consumption, including in the luxury segment. Among sector comparables, LVMH was down 0.97%, while Kering saw a slight increase of 0.67%, demonstrating a disparity in treatment within the sector. Hermès has been experiencing a much more severe drop than its peers for several weeks. The next key date for the market is April 15, when the first quarter 2026 revenue figures will be published, followed by the annual general meeting of shareholders on April 17.
Le modèle Hermès, fondé sur une distribution exclusive et qualitative, a une nouvelle fois porté ses fruits. Hermès aborde l’année 2026 avec confiance.
Résultats annuels 2025 solides: chiffre d’affaires de 16 002 millions d’euros, croissance à taux constants de 8,9 % et croissance à taux courants de 5,5 %. Résultat opérationnel courant de 6 569 millions d’euros (41,0 % du chiffre d’affaires) et résultat net de 4 524 millions d’euros. Cash flow disponible ajusté de 3 880 millions d’euros; trésorerie nette retraitée à 12 773 millions d’euros. Propositions de dividendes et actions nouvelles pour 2026, avec un accent sur le développement et l’emploi.
Outlook / guidance
Expected revenue: Le chiffre d’affaires 2026 est attendu en progression à taux constants sans chiffre précis communiqué.
Expected EBITDA: Non précisé dans le communiqué.
Expected net income: Non précisé dans le communiqué.
Management commentary: Perspectives positives pour 2026, grâce au modèle d’entreprise intégré et à la fidélité de la clientèle, malgré un contexte économique et géopolitique incertain.
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