Hermès International ($RMS) faced a significant downturn at the start of trading on April 15, with shares plummeting over 13-14%, marking one of the worst days in its history. This decline brought the stock to its lowest level in over three years, falling nearly 28% year-to-date. The company reported Q1 revenues of €4.07 billion, a 1.4% year-over-year decline, missing market expectations of approximately €4.13-4.16 billion.
The disappointing results stemmed from a negative currency impact and weaker-than-expected organic sales growth of 5.6%, against a consensus estimate of 7.1%. Notably, while segment performance appeared dire—particularly in watches and apparel—adjusted for currency effects, the declines were less severe. The Americas region stood out with a robust 17.2% growth, contrasting sharply with a 2.8% decline in France, attributed to reduced tourist traffic amid geopolitical tensions.
For market professionals, Hermès’ struggles highlight the volatility within the luxury sector, especially in light of external pressures. The stock’s current trading dynamics suggest a critical resistance/support zone around €2,000-2,100, which will be pivotal for future price movements.
Source: xtb.com