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In a challenging time for the luxury market, the Hermès (HESAY) stock hasn't gone anywhere in recent months. But recovery looks entirely likely. The company's H1 2026 results reveal improvement in geographies affected by the US-Iran war and the margins remain very strong too. With the stock's price at over three year lows and its market multiples attractive, I'm reiterating a Buy rating, even as geopolitical uncertainty and sluggish growth in China are concerns.
Hermès is now rated a strong buy after a rare 43% share price collapse, despite resilient fundamentals and premium brand positioning. Q1 2026 revenue growth of 5.6% missed expectations, but long-term EPS trends remain robust and profit margins have expanded to nearly 30%. Temporary headwinds—Middle East conflict, travel disruptions, and industry-wide weakness—do not threaten HESAY's secular growth or exclusive client base.
RELEASE Paris, May 15, 2026 INFORMATION RELATING TO THE TOTAL NUMBER OF VOTING RIGHTS AND SHARES COMPRISING THE SHARE CAPITAL In accordance with the provisions of Article L. 233-8 of the French Commercial Code ( Code de commerce ) and Article 223-16 of the General Regulations of French Autorité des Marchés Financiers (AMF), Hermès international publishes each month, before the 15 th day of the following month, the total number of voting rights and the number of shares comprising the share capital if they have varied from those previously published.
On May 14, 2026, we present a DCF analysis for Hermes International SA (HESAY), a luxury goods company currently facing significant price performance challenges
Hermes faced a sharp Q1 2026 sales slowdown due to the Middle East conflict, triggering a double-digit stock drop and creating a compelling entry point. Despite a 6% revenue increase (entirely price-driven), volume growth was flat, and Middle East sales fell 6%, but profitability remained intact. HESAY's valuation compressed from 51–52x to 38.3x P/E, offering robust 10–12% long-term return potential as fundamentals remain resilient.
Hermès International Société en commandite par actions (HERM:CA) Shareholder/Analyst Call Transcript
Hermès International Société en commandite par actions (HERM:CA) Q1 2026 Sales/Trading Call Transcript
Luxury stocks fell sharply on Wednesday after disappointing first-quarter earnings from Kering and Hermès highlighted the growing toll of the Middle East conflict on high-end spending, tourism and investor confidence. The selloff, which spread across Europe's luxury sector, signals rising concerns that geopolitical tensions and macroeconomic uncertainty are derailing hopes of a recovery in the $400 billion industry.
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