Hermès Shares Plunge 10% to a Three-Year Low Following Q1 Results
On Wednesday, Hermès International experienced a sharp decline during the trading session, with its shares dropping over 10% following the announcement of its quarterly revenue. The stock broke through the symbolic threshold of 1,600 euros, a level not seen since early 2023. The Parisian luxury house has now seen a decline of more than 31% over the past year.
Market Reaction Following Q1 Revenue Announcement
The stock market punishment came right after this morning's publication of the first quarter 2026 revenue. Although Hermès reported a 6% organic growth at constant exchange rates, the group saw 290 million euros wiped out due to unfavorable exchange rate effects, bringing the consolidated revenue down to 4.1 billion euros. This discrepancy between actual commercial dynamics and accounting translation has heavily impacted the market's reaction. The shares fell by 10.18% to 1,601.50 euros, after closing at 1,783 euros the previous day. During the session, the stock hit a low at 1,595 euros, thus marking its three-year low reached earlier in 2023 in a context of rapidly rising interest rates. Over three months, the cumulative decline now stands at 28.5%. The regional breakdown published by the group also reveals significant geographical disparities, with some areas experiencing a noticeable decline in activity. The general meeting of shareholders, scheduled for April 17, will take place just two days after this tense announcement.
Technical Analysis of Hermès Stock Performance
From a technical standpoint, Hermès' stock price is now in the lower part of its Bollinger Bands, only 17% above the lower limit set at 1,545.40 euros, indicating a potential oversold zone. The stock is also significantly below its 50-day moving average (1,898.31 euros), confirming the bearish trend that has been in place for several weeks. The nearest technical support, located at 1,609 euros, was briefly breached this morning. Resistance is at 1,967 euros, more than 22% above the current price.
This marked correction occurs in a fragile sectorial context: during the session, LVMH is down by 1.17% and L'Oréal by 0.65%. The CAC 40 is also down by 0.63% mid-morning. However, the drop in Hermès' shares is significantly greater than that of its luxury peers, highlighting the market's specific reaction to the group's quarterly publication. The upcoming financial deadlines – half-year results on July 29, third-quarter revenue on October 22 – will be crucial milestones for the trajectory of the stock.
