Paris, Jan 31, 2026, 20:57 CET — The market has closed.
- Hermes shares ended Friday’s session in Paris up slightly, closing at 2,029 euros, a 0.1% gain.
- The company is setting up a new leather goods workshop in Les Andelys, Normandy, aiming to create 260 artisan jobs.
- All eyes now turn to the annual results coming out on Feb. 12.
Hermes shares closed Friday up 0.1% at 2,029 euros, eking out a modest gain but still down roughly 4.7% for the week. The Paris-listed luxury group’s announcement of a new French leather-goods workshop failed to spark much movement before markets closed for the weekend.
The shift was subtle, yet the timing is key. Investors enter the new week eager to see how Hermes plans to sustain growth without compromising the strict production controls that support its pricing strength.
Capacity plays a crucial role in the group’s leather goods and saddlery segment. While new facilities boost production potential, they also push hiring and training expenses upfront, with gains often delayed.
On Friday, the company announced plans to open a new leather goods workshop in Les Andelys, Normandy, aiming to employ 260 artisans eventually. This move will expand its Normandy hub, which currently has workshops in Val-de-Reuil and Louviers, with a further site slated for Colombelles. Hermes said new hires will be trained at its Louviers apprenticeship school, which runs an 18-month paid program in collaboration with partners like France Travail, the Normandy Chamber of Commerce and Industry, and Seine Normandie Agglomération.
In another statement, Hermes said it is “continuing to invest in its production capacities” while relying on an “integrated artisanal model.” The luxury group added it has opened 13 leather goods workshops across France since 2010. MarketScreener
Investors are watching closely to see if these capacity increases will boost sales without costs outpacing revenue. Skilled trades remain in short supply, and new workshops usually scale up slowly.
The macro environment remains supportive but volatile. European shares closed January with gains on Friday, fueled by earnings that sparked big moves in individual stocks. Investors also digested changing U.S. rate expectations following President Donald Trump’s nomination of Kevin Warsh to head the Federal Reserve. “It … offers a degree of continuity,” said Daniel Murray, global head of discretionary portfolio management at EFG International. Reuters
Still, adding capacity pushes fixed costs higher. If demand for luxury cools off or if hiring and training take longer than planned, returns from new locations could be delayed even more.
Paris trading kicks off Monday with a key focus: will the production update lure buyers back after a sluggish week, or will Hermes keep tracking the wider luxury sector mood?
Hermes is set to release its 2025 annual results on Feb. 12 at 0800 CET. Investors will focus on any updates about demand, pricing, and the pace at which new capacity will be added.
