Hermès Stock Breaks Through 1,457 € Support and Declines 9% Over the Week
The Paris-based luxury leather goods manufacturer's shares are retreating sharply this Tuesday, within a broadly declining CAC 40. The slide exacerbates an already pronounced downtrend over several weeks, as Rothschild & Co Redburn revised its price target downward the previous day while maintaining its buy rating.
The 1,457 € Support Level Broken During the Session, All Three Moving Averages Well Above
Hermès International is losing 2.24% to 1,442.00 € during the session, within a CAC 40 declining 0.46%. The stock ranks among the index's steepest declines, with a pullback of nearly 9% over the week and almost 12% over the month. The technical configuration has deteriorated further: the price has broken through its support level at 1,457 € during the session and remains below this threshold, now transformed into an immediate resistance level.
All three moving averages weigh above the price, with a gap of 7.84% below the 20-day MA at 1,564.75 €, nearly 10% below the 50-day MA at 1,600.63 € and over 20% below the 200-day MA at 1,811.44 €. The RSI at 37 reflects persistent selling pressure without yet signaling clear oversold conditions, which leaves room for further downside before any exhaustion signal.
Rothschild & Co Redburn Lowers Its Price Target to 1,835 € but Maintains Buy Rating
On Monday, September 7, Rothschild & Co Redburn revised its price target on Hermès from 1,975 € to 1,835 €, while maintaining its buy opinion. At the current price of 1,442 €, this target implies a theoretical upside potential of nearly 27%. This revision comes against a backdrop of sector-wide pressure: Swiss watch exports to China declined 18.5% year-over-year in July 2026, and jewelry and gold sales in China fell 10.1% over the same period, signaling a slowdown in luxury demand in this market.
During the publication of first-half 2026 results on July 29, Hermès had mentioned an unfavorable currency impact exceeding 360 million euros on its revenue and a 4% decline in the Perfume and Beauty business at constant exchange rates. Upcoming quarterly publications will be crucial in determining whether the Chinese slowdown deepens or stabilizes.
