Paris, Jan 10, 2026, 20:37 CET — Market closed
- Hermes shares gained 3.74%, finishing at €2,217 in Paris on Friday
- Hermes revealed the balance of its BNP Paribas liquidity-contract account as of Dec. 31
- Oddo BHF maintained a Neutral rating but lowered its target price to €2,200
Hermes International shares gained 3.7%, closing at 2,217 euros on Friday. The rally pushed the stock back above the 2,200-euro threshold during late trading in Paris. (MarketWatch)
That’s significant since Hermes occupies the pricey top tier of Europe’s luxury sector. The stock reacts to even minor tweaks in growth expectations, not only major shocks.
No new product launch or earnings update arrived this week. Instead, the spotlight was on a broker-led valuation reset and a standard disclosure about the company’s own-share trading practices.
Hermes reported on Thursday that its liquidity contract with BNP Paribas included 4,618 Hermes shares and €15.708 million in cash as of December 31, 2025. During the second half of 2025, the bank purchased 73,749 shares and sold 72,547 shares, the company added. (Euronext Live)
Liquidity contracts, a standard feature in France, aim to back daily trading by having a bank buy and sell within predefined limits. For equity investors, the disclosure serves more as technical detail than a market signal, yet it offers concrete figures on trading flow.
Oddo BHF maintained a Neutral rating but trimmed its price target to 2,200 euros from 2,264, citing a valuation that “still leaves little room for maneuver.” The broker kept its forecasts steady, expecting about 8% organic growth in Q4 and a 39.8% EBIT margin in 2025. (Organic growth excludes currency fluctuations and acquisitions, while EBIT refers to operating profit before interest and taxes.)
Oddo BHF noted that Japan, the Americas, and Europe excluding France remained active late in the year, with Asia-Pacific seeing only a modest rebound. The firm also pointed to sluggish perfume sales in France, blaming destocking as retailers cleared out inventory and a shortage of new product launches. Additionally, it warned that currency fluctuations might weigh more heavily in Q4 compared to Q3.
Hermes faces familiar challenges ahead of its results: how much volume remains, how much is driven by price, and just how sharply foreign exchange will impact conversions of overseas sales back into euros.
Investors remain focused on familiar pressure points in luxury. Demand from China has been unpredictable, U.S. consumer spending can shift suddenly, and top-tier brands still need to demonstrate they can maintain margins amid unfavorable currency moves.
But the setup works both ways. If growth is just “good” instead of outstanding, or if the currency impact turns out bigger than anticipated, a stock priced for steady results can swing sharply on revised guidance.
Hermes is set to release its 2025 annual results on Feb. 12 at 08:00 CET, with first-quarter 2026 revenue due April 15, according to the company’s calendar. Investors will focus on the 2026 growth outlook, currency assumptions, and any remarks about perfumes and demand in Asia. (Hermes)
