Hermès Shares Break Through Support Level and Continue to Decline
Hermès International shares fell by 1.99% to €1,575 in mid-afternoon trading, while the CAC 40 index rose by 0.51% during the session. The luxury brand is among the biggest losers in the Paris index, moving against a generally positive market trend. The stock briefly dipped below its €1,571.50 support level to a low of €1,563.50, before climbing slightly above it again.
Today's trading focused on a specific technical level. The stock price broke below the €1,571.50 support, touching an intraday low of €1,563.50, before slightly recovering to €1,575. The area remains vulnerable: a sustained break below could lead to a more significant test below €1,560. Beyond this threshold, the medium-term outlook remains bleak. The stock is trading below its 20-day moving average (€1,624.53), its 50-day average (€1,698.38), and significantly below its 200-day average (€2,004.92), with a 21.44% deviation from the latter. The RSI at 44 remains neutral with no oversold signal, which does not rule out further declines. Over three months, the stock has lost 22.76%; over a year, the decline reaches 38.45%.
Luxury Sector Under Pressure as Chinese Consumer Spending Slows Significantly in April
Free · Every morning
Technical market signals, before the opening bell.
Bullish and bearish momentum, analyst changes, stocks to watch — automatically computed from Euronext data.
✓ Before 9 AM every morning✓ Euronext data✓ AI-powered analysis
Almost there! Check your inbox.
A confirmation email has been sent. Click the link to confirm your subscription.
An error occurred.
Indicative data. No investment advice. Unsubscribe at any time.
The European luxury sector continues to be vulnerable to the Chinese economic situation, which has significantly worsened. According to data released yesterday by the National Bureau of Statistics, retail sales in China grew by only 0.2% year-over-year in April, down from 1.7% in March, marking the slowest pace since December 2022. Industrial production also fell short, at 4.1% compared to 5.7% the previous month. In this context, LVMH also dropped by 0.31% and Kering by 0.79% during the session. Despite the correction, valuations remain high: according to the consensus of analysts surveyed, the stock is trading at approximately 35.3 times current year earnings and 30.5 times next year's earnings. During the annual results announcement for 2025 (on February 11, 2026), the company confirmed an ambitious medium-term constant currency revenue growth target. The €1,571.50 support level remains a key technical level to watch in the coming sessions.
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.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
