Hermès Stock Posts 14.5% Decline Over One Month
The Paris-based luxury goods manufacturer is continuing its difficult period on Tuesday, posting a moderate decline during the session while its price remains well below its long-term moving averages. Barclays revised its price target downward today without changing its opinion on the stock.
A Contained Decline in a Nearly Stable CAC 40, but Persistent Downward Pressure
Hermès International is down 1.45% to €1,361.50 during the session, trading in a CAC 40 that is essentially flat (-0.08%). The stock ranks 35th in the index for the session, in the lower part of the rankings, while the rest of the luxury sector is holding up better: LVMH is down 0.81% and Kering is down 1.03%. The underlying momentum remains under pressure: the stock is down -14.8% over one month and -16.27% over three months, a slide that illustrates the persistence of the downward movement initiated several weeks ago. The sector environment is not helping: jewelry and gold sales in China fell 17.5% year-over-year in August 2026 according to official NBS data, in a context of sluggish discretionary spending in the country.
From a technical perspective, the price is below the 20-day moving average at €1,413, the 50-day moving average at €1,522.77, and the 200-day moving average at €1,755.76, which represents a gap of more than 22% above the current price. The RSI at 39 is approaching oversold territory without entering it, while the MACD shows a slightly positive histogram (2.88), a sign of early attenuation of the downward momentum in the short term. The support level at €1,331.50 remains the immediate target in case of continued decline.
Barclays Maintains Its Opinion but Lowers Its Target to €1,660, Implying 22% Upside Potential
Barclays published a revision of its analyst opinion on Hermès on Tuesday, lowering its price target from €1,700 to €1,660, while maintaining a "market weight" opinion. At the current price of €1,361.50, the revised target implies upside potential of approximately 22%. This move is part of a broader trend of downward revisions: two research firms had already lowered their price targets in late September, confirming progressive deterioration in sentiment around the stock.
The first-half 2026 results, published on July 29, highlighted an unfavorable currency impact of over €360 million on revenues, as well as a 4% decline in the Perfumes and Beauty business at constant exchange rates. In parallel, the group announced the opening of its sixth Hermès Maison in London and advancement of its manufacturing expansion program, with a 25th leather goods facility inaugurated in Loupes and three new units planned by 2030. Barclays' revision to €1,660 now places the target significantly above the resistance level identified at €1,598, a threshold that the stock should first reclaim to confirm a trend reversal.
