Hermès shares fall to four-year low and drop 7.5%
The Parisian leather goods maker is sinking during the session and marking a new multi-year floor, following unfavorable developments: the group has just released its activity for the first nine months. The stock is the worst performer on the Paris index, in a market also oriented downwards.
A four-year low of €1,234 and a €1,262.50 support level broken
Hermès shares are down 7.52% at €1,254.50 and touched €1,234.00 during the session, their lowest level in four years (the previous floor of €1,255.00 dated from 2022). The stock broke through its €1,262.50 support level during the session, the low of the last 250 sessions, which has now become a resistance level. The price is trading 4.5% below its 20-day moving average and 25.4% below its 200-day moving average, while the RSI at 34 remains above the oversold zone.
Over the quarter, the decline reaches 25.4%. The stock is the worst performer on the CAC 40, which fell 1.35%. Other luxury stocks are also losing ground: LVMH is down 1.53% and Kering 2.89%, while Christian Dior limits its decline to 0.80%.
Third quarter at +4.3% at constant exchange rates, down from the first half
Hermès published this morning a turnover of €12,260 million over nine months, up 6.0% at constant exchange rates and 2.9% at current rates. The third quarter, at €4,096 million, grew 4.3% at constant exchange rates, compared with 6.1% in the first half. Quarter growth is concentrated in leather goods (+10.8%), while Asia-Pacific excluding Japan remained flat.
According to the company, the currency effect weighs approximately €310 million over the nine months. The figures for this third quarter come as the stock is already down 44.2% over one year. CIC Market Solutions has meanwhile confirmed its buy rating today with a price target of €1,700, representing a potential of 35% compared with the current price.
