Hermès stock plunges more than 7% over a week and threatens its support level
The rue du Faubourg Saint-Honoré luxury goods manufacturer continues its decline this Tuesday, in an almost stable CAC 40. The company is now posting a decline of more than 26% over one year, anchored by the fall of more than 10% suffered following the publication of its half-yearly results on July 29.
A contained decline that is part of an extended technical deterioration
Hermès International is down 1.73% at €1,533.50 in trading, while the CAC 40 remains virtually unchanged (-0.07%). The stock is trading well below its 20-day moving average (€1,632.48, down 6.06%) and its 50-day moving average (€1,637.24, down 6.34%), two moving averages that it has failed to reclaim since the breakdown in late July. The gap to the 200-day moving average (€1,880.97) exceeds 18%, which illustrates the extent of deterioration over several months.
The RSI at 43 remains in neutral territory, without marked signs of selling exhaustion at this stage. The support level at €1,508.50 represents the next significant threshold, less than 2% below the current price.
Half-yearly results under pressure and a sector context that weighs
The stock's downward momentum is inseparable from the half-yearly results published on July 29, which had triggered a fall of more than 10% in a single session. The company had reported revenue growth of 6.1% at constant rates in the first half of 2026, but current operating margin had contracted to 41.0% from 41.4% a year earlier, due to an unfavorable currency impact of more than 360 million euros. The Perfume and Beauty segment had declined 9.5% at constant rates in the second quarter, while Leather Goods and Saddlery (+10.2%) had partially compensated.
This Tuesday, Hermès is not alone under pressure in Parisian luxury: LVMH is down 1.79% and Kering is down 2.81%, in a sector weakened by retail sales data from China showing limited growth of 1% year-over-year in June 2026. The analyst consensus remains worth monitoring following the adjustment of several price targets in the wake of results. The support level at €1,508.50 constitutes the next concrete technical reference point.
