Despite sales up nearly 10% in the third quarter, Hermès shares fell sharply on the Paris Stock Exchange on Wednesday. The leather goods and saddler, a symbol of consistency in the luxury sector, is experiencing a shift away from investors, attracted by stocks deemed more "dynamic" in a rapidly rotating market.
A robust publication, but a demanding market
Hermès reported a 9,6% like-for-like increase in revenue between July and September, slightly above the analyst consensus (9,4%). However, this performance was not enough to convince the markets. Around 11:15 a.m., the share price fell 4,4%, recording the second-largest decline in the CAC 40. The group slightly disappointed in its most strategic division, leather goods and saddlery, which represents nearly 45% of sales. Its 13,3% growth appeared slightly below market expectations (14%). For Royal Bank of Canada, this division, a historical pillar of Hermès' success, alone justifies a cautious response in the short term. Other analysts, such as Bernstein, put things into perspective: they believe the group may simply have voluntarily limited its deliveries before the holiday season, which is more favorable to sales.
A market rotation towards riskier values
This stock market correction can also be explained by broader dynamics. While LVMH and Kering are benefiting from investor optimism about a luxury recovery in 2026, Hermès is seen as a defensive stock, less likely to offer a strong acceleration. "The market prefers to reposition itself on discounted stocks, even if it means abandoning safe havens," explains a Parisian intermediary. UBS also highlights the lack of a marked rebound in Asia-Pacific, where growth remains limited to 6%, despite a favorable comparison base. This stabilization, coupled with the moderation of the clothing and accessories division, could indicate a normalization of demand after several years of strong expansion.
A value still solid, but under pressure
Since the beginning of the year, Hermès shares have lost around 6,5%, while LVMH has fallen 2% and Kering has gained more than 35%. Despite this decline, the group remains one of the most profitable in the sector and maintains a record valuation. But for Jefferies, this "almost too perfect" regularity could now work against it: "The markets, in a recovery phase, are looking for spectacular growth, not consistency." A paradox for a house whose model is precisely based on stability and rarity, far removed from the market's frenzies.
