Pernod Ricard Shares Drop Nearly 10% in a Week, Approaching a Key Support
Pernod Ricard's stock continues its slide this Tuesday, March 3, amid a general downturn in European markets due to geopolitical tensions in the Middle East. The stock is down 2.3% at midday, trading at 75.60 euros, bringing its weekly loss to nearly 10%. Over the year, the market capitalization of the spirits group has shrunk by more than a quarter.
Current Technical Indicators
At 75.60 euros, Pernod Ricard is now significantly below its 50-day (77.21 euros) and 200-day (85.74 euros) moving averages, indicating a bearish trend established over multiple time horizons. The recent crossing below the 50-day moving average confirms the acceleration of the downward movement that began several weeks ago. The RSI, an indicator measuring the speed and magnitude of price changes, is at 39, approaching the oversold zone typically below the 30 threshold. This level signals sustained selling pressure without immediately indicating a technical excess. The next identified support is at 72.92 euros, about 3.5% below the current price, a floor that could become a focal point in the upcoming sessions if the bearish pressure continues.
Structural Challenges and Financial Outlook
The 26.78% decline recorded by the stock over twelve months reflects the structural challenges faced by the group led by Alexandre Ricard, in an environment marked by post-pandemic consumption normalization and uncertainties related to demand in China and the United States, its two main markets. The more than 2% drop over three months shows that this trend has not reversed recently, despite a monthly volatility contained at 13.66%. The next key date on the financial calendar is set for April 16, 2026, when Pernod Ricard will publish its third-quarter revenue for the fiscal year 2025-2026. This release will be closely watched to assess the evolution of premium spirits volumes and the group's ability to defend its market share in a competitive environment. Until then, the stock may remain under the influence of macroeconomic factors, including the surge in energy prices caused by the conflict in Iran, which could impact the group's international logistics and transportation costs.
