Hermès Shares Slide to €1,541.50, Plunging 40% Over One Year
Hermès International shares fell 2.16% to €1,541.50 by midday, in a CAC 40 that dropped 0.67%. The luxury house is among the biggest losers in the Paris index, alongside Kering (-2.30%) and LVMH (-1.87%). The decline is part of a generally downward trend in the luxury sector, against the backdrop of rising global bond yields.
Hermès Falls Below Bollinger Lower Band, Down -25.6% Over Three Months
Hermès shares have dropped to €1,541.50, slightly below the lower Bollinger band set at €1,542.10. This breach indicates a potential oversold configuration. The price is now below its three main moving averages: it is 5.84% below the MM20 (€1,637.03), 9.92% below the MM50 (€1,711.22), and 23.31% below the MM200 (€2,010.13), signaling a significantly deteriorated underlying trend. The RSI at 39 remains in the neutral zone, not yet tipping into strict technical oversold territory. The identified support at €1,571.50 was breached during the session. Over the past twelve months, the stock has declined by 40.34%, and by 25.6% over three months. The luxury sector mirrors this movement, with Kering at -2.30%, LVMH at -1.87%, and Christian Dior at -1.82%.
Still High Valuation Amid Tense Bond and Geopolitical Environment
Based on the consensus of 21 analysts, the stock is trading at about 34.5 times the earnings expected for the current fiscal year and 29.9 times those of the next year. This valuation remains well above the Consumer Discretionary sector average (14.3 times). The expected EPS growth from one fiscal year to the next is set at 15.7%. The session's context weighs on values sensitive to long-term rates. The yield on the 10-year US Treasury has risen to 4.63%, the highest since February 2025, and the 30-year Japanese JGB has hit a record around 4.20%. Brent crude above $110 fuels fears of sustained inflation. In sectoral economic news, Swiss watch exports to China grew by 4.2% year-on-year, and jewelry sales in China showed a +11.7% YoY increase in March, according to the NBS. During the 2025 annual release (February 11, 2026), the saddlery house confirmed its ambitious medium-term constant-rate revenue growth target. Next key event: the first half 2026 results, expected on July 29, 2026.
