Hermes Shares Drop 4%, Weighed Down by Middle East Tensions
The saddler from Faubourg Saint-Honoré experiences a significant drop mid-session, in a CAC 40 heavily shaken by a resurgence of geopolitical tensions. The stock erases its early July rebound attempts and once again falls to the lower end of the Paris index.
A Drop that Repositions the Stock Among the Largest Declines in the CAC 40
Hermès International shares lose 4.09% at €1,573.00, among the steepest declines in the CAC 40. The Paris index drops 2.21% during the session, weighed down by a resurgence of tensions in the Middle East following American strikes against Iran and an Iranian counterattack claimed in Kuwait and Bahrain. The VIX jumps nearly 20% to 18.63, indicating a clear return of volatility in the markets.
The Parisian luxury sector follows suit, with Kering down 3.53%, Christian Dior by 3.06%, and LVMH by 2.84%. Today's drop erases most of the rebound that began last week, when the stock had gained 2% aiming for its 20-day moving average.
The Stock Falls Below Its Three Moving Averages with an RSI Returning to Neutrality
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Today's decline brings the price 4.91% below its MM20 (€1,654.20) and 3.53% below its MM50 (€1,630.64), while the MM200 (€1,926.08) remains distant at 18.33%. The stock returns to its technical support identified at €1,564, the holding of which will condition the continuation of the movement. The RSI at 50 indicates a sudden shift towards neutrality, after the recovery attempts at the beginning of the month.
According to the consensus of analysts surveyed, the stock is trading at about 35.4 times the earnings expected for the current fiscal year and 30.6 times those of the next fiscal year, a multiple that leaves little margin in a context of a fragile luxury market in China (jewelry and gold sales down 8.9% year-on-year in May according to the NBS). The next major event remains the publication of the half-yearly sales figures, expected at the end of the month.
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.