Hermès Shares Soar 7.6% Following LVMH Results
The luxury leather goods maker's stock made strong gains this Wednesday morning, driven by the euphoria affecting the entire sector following the publication of encouraging results from its competitor.
Significant Increase in Hermès Shares
Hermès shares marked a significant increase of 7.6% at the opening this Wednesday, October 15, reaching 2,180 euros compared to 2,026 euros the day before. This rise is part of a broader movement affecting the entire Parisian luxury sector, driven by the quarterly results of LVMH published Tuesday evening. The luxury giant indeed announced an organic growth of 1% in the third quarter of 2025, a figure slightly above analysts' expectations, which was enough to revive investor optimism after several challenging months. In this context, the CAC 40 is up 2.37% at 8,107.27 points at the start of the session, while trading volumes on Hermès remain modest with only 0.03% of the capital traded, suggesting a mechanical reaction rather than a massive repositioning of investors. Over a longer period, the performance of the stock remains mixed. While the past week shows a gain of 3.07%, the decline reaches 9.51% over three months, reflecting ongoing concerns about luxury consumption in China and the impact of trade tensions with the United States. Over one year, the progression is limited to 3.11%, a performance lagging behind the CAC 40, which gains 6.65% over the same period. This relative underperformance illustrates the specific pressures weighing on the luxury sector since the summer of 2024, despite the intrinsic strength of the Hermès brand.
Technical Perspective on Hermès Stock
From a technical standpoint, the stock crossed its resistance this morning at 2,161 euros and touched the upper limit of its Bollinger bands at 2,179.48 euros, a level that generally represents a maximum extension in a short-term volatility channel. This configuration indicates a concentrated buying movement that could face profit-taking if the stock fails to consolidate above this threshold. Moreover, Hermès is now positioned above its 50-day moving average, established at 2,089.58 euros, which is a positive medium-term technical signal. However, the stock is still distant from its 200-day moving average, located at 2,362.71 euros, suggesting that the underlying trend remains bearish since the beginning of the year. Momentum indicators present mixed signals. The Relative Strength Index (RSI) is at 45, a neutral position that indicates neither overbought nor oversold conditions, leaving room for movement in either direction. The MACD, a moving average convergence-divergence indicator, shows a line at -10.47 and a signal line at -0.97, with a negative histogram at -9.50, reflecting a still bearish dynamic in the medium term despite today's rebound. These technical elements suggest that the current rise is more akin to a temporary catch-up rather than a confirmed trend reversal.
Monthly Volatility and Market Position of Hermès
The monthly volatility of the stock, measured at 7.66%, remains relatively contained for a luxury sector value, reflecting the brand's solidity and its ability to absorb market shocks. Even more significant, the beta coefficient of Hermès is established at -0.11, indicating a negative correlation with the CAC 40, which makes it a defensive value in periods of stock market turbulence. This characteristic partly explains why the stock is progressing less strongly than the index this morning, despite the positive momentum effect of the luxury sector. Recent capital flows, measured by the Chaikin Money Flow at -0.18 and the negative On-Balance Volume at -239,743, however, indicate persistent selling pressure over the last few weeks, tempering the recovery signals observed this morning.
