Paris, January 17, 2026, 21:04 CET — The market has now closed.
- Hermès shares dipped 2.1% on Friday, closing at 2,190 euros.
- Luxury stocks dragged European markets lower following a broker downgrade on Richemont, reigniting concerns over valuations.
- Hermès’ next major event: the release of its 2025 annual results on Feb. 12.
Hermès International shares closed Friday down 2.06% at 2,190 euros, extending a late-week slide for European luxury stocks ahead of the Paris market’s weekend break. (MarketWatch)
Timing is crucial. Luxury stocks have drawn heavy interest since January, and investors are heading into a period where broker updates and earnings reports could quickly sway sentiment.
Hermès, frequently seen as a “quality” benchmark in luxury, faces Monday’s session with a key question: was Friday’s sell-off just a brief correction, or the beginning of a more persistent slide?
On Friday, the STOXX Europe luxury index tumbled 3.2%, marking its sharpest one-day decline since early October. Richemont took a harder hit, dropping 5.4% after BofA Global Research downgraded the stock to neutral from buy, citing stretched valuations following the recent rally. “European equities aren’t cheap anymore,” said Morningstar’s chief European equity strategist Michael Field, noting that “the margin of safety” has vanished. Meanwhile, Moneyfarm CIO Richard Flax pointed to ongoing geopolitical risks as a concern. (Reuters)
Hermès released no new company updates linked to the move, so the stock’s action seemed driven more by broader sector risk sentiment than by any specific news.
That works both ways. In risk-off environments, even top-performing brands get sold to free up cash. When sentiment shifts, investors usually pile back into the stocks they trust the most.
Yet investors still weigh a downside risk: should broker downgrades gain traction and earnings forecasts for the sector turn cautious, the conversation around “valuation” could trigger a sharper de-rating. Holding onto a high multiple gets tougher if Chinese demand slips once more or currency shifts hurt euro-zone exporters.
Hermès is set to release its 2025 full-year results on Feb. 12 at 0800 CET. (Hermes)
Traders are focused on any shift in demand across Greater China, the speed of price increases, and if supply constraints—which are central to Hermès’ strategy—are loosening as new capacity ramps up.
The immediate test comes at Monday’s open: will Friday’s plunge in luxury stocks hold, or will it spark a wider sector rotation that leaves Hermès stuck in the crossfire?
