Hermes International

Hermès has been crushed. At around €1,270, the shares are near a four-year low and roughly 40% below their 52-week high. But here is the fascinating part: the business is still producing extraordinary margins and billions in cash. First-half 2026 revenue reached €8.16 billion, up 6.1% at constant exchange rates. Recurring operating income reached €3.35 billion, giving Hermès an exceptional 41% operating margin. Adjusted free cash flow was €2.18 billion, while net cash exceeded €12.9 billion. So why is the stock collapsing? Growth is slowing, currency movements are hurting reported results, and investors are increasingly questioning whether luxury demand can continue growing at historic rates. Second-quarter revenue also came slightly below expectations. UBS recently downgraded the shares to sell, citing concerns about changing resale dynamics and potentially more cyclical demand. The dividend remains modest but steadily rising: €18 per share for 2025, compared with €16 in 2024 and €15 in 2023. The value argument is improving rapidly, but Hermès is still valued at a premium. Recovery could come if sales growth reaccelerates and luxury demand stabilizes. The major risk is that the market is correctly anticipating a longer period of slower growth. This review is for informational and educational purposes only, not financial advice.

We explore why Hermes International’s stock is down, reviewing its financial performance, dividend history, margins, and market risks. Discover the factors behind the dip, and why this luxury giant might still appeal to long-term investors.

Hermès International is one of the most iconic luxury brands in the world. With its stock down, we break down what’s behind the decline and whether there’s long-term value hidden beneath the high-end polish.