Hermès is posting one of the most notable declines on the CAC 40 this Friday on the Paris Bourse, with the luxury house's shares weighed down by a note from RBC, which has revised its earnings forecasts for the group downwards.
In a sector note published early this morning, the Canadian broker explained that it has lowered its price target from 2,400 to 2,100 euros, while maintaining its "outperform" rating on the stock.
The intermediary indicates that it expects first-quarter revenue of 3.98 billion euros, representing a 6% increase at constant exchange rates but a 4% decline on a reported basis.
However, it added that it has reduced its earnings per share (EPS) estimate for the full 2026 fiscal year by 2%.
In its study, RBC highlights that earnings for companies in the sector are no longer truly growing, and that their share prices are trending downwards.
But RSI (Relative Strength Index) indicators - which provide a graphical representation of market momentum - show that the sector is now clearly "oversold", the analyst points out.
Around 5:15 p.m., Hermès shares were down 0.3%, in line with the CAC 40's decline at the same time. The stock remains down nearly 22% for the year.
Hermès International specializes in the design, manufacturing, and marketing of luxury products. Net sales break down by family of products as follows:
- leather and saddlery goods (44.2%): purses, luggage, small leather goods, planners, writing items, saddles, bridles, riding objects and clothing, etc.;
- clothes, shoes, and accessories (28.3%);
- silk and textile products (6%);
- clock and watchmaking articles (3.4%);
- perfumes and beauty products (3.1%);
- other (15%): mainly jewelry and home decoration products.
At the end of 2025, the group had a network of 294 stores worldwide.
Net sales are distributed geographically as follows: France (9.8%), Europe (14.8%), Japan (9.9%), Asia/Pacific (41.9%), Americas (19.2%) and Middle East (4.4%).
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