Hermes Plummets 13% on the Anniversary of the RMS Titanic Disaster ⚓

Today, April 15, marks the 114th anniversary of the sinking of the RMS Titanic—and it’s hard not to notice a certain parallel: on the very same day, shares of Hermès International, listed under the ticker $RMS, came under serious pressure on the Paris Stock Exchange.  Hermès International, listed on Euronext under the ticker RMS, experienced one of the worst days in its stock market history, losing over 13–14% at the opening of the Paris session. The stock thus fell to its lowest level in over three years, and since the beginning of the year, the price has already dropped by nearly 28%.

📊 Q1 2026 Results — Report vs. Expectations

Revenue for Q1 amounted to €4.07 billion, representing a decline of 1.4% year-over-year at current exchange rates — mainly due to a negative currency effect of  €290 million. The market had expected approximately €4.13–4.16 billion. Organic sales growth at constant exchange rates was +5.6%, while the Visible Alpha consensus had projected  +7.1%— a significant disappointment given the expected acceleration following a solid Q4 2025 (+9.8%). However, it is worth highlighting an important nuance: segment results in reported currencies look dramatic (watches -10%, apparel -6%), but after eliminating the currency effect, the picture is much milder — organically, watches are down only  -3.7%, and apparel is practically flat at +0.4%.

🌍 Geographic results (fixed exchange rates)

• 🇺🇸 The Americas: +17.2% — an exceptional quarter, with balanced growth across all segments in the U.S., Canada, and South America; by far the highlight of the report

• 🇯🇵 Japan: +9.6% — strong loyalty among local customers; in March, the Umeda Hankyu boutique in Osaka was expanded and renovated

• 🇪🇺 Europe excluding France: +9.7% — strong growth driven by local demand

• 🇫🇷 France: -2.8% — a noticeable decline in tourist traffic, particularly in March, linked to the situation in the Middle East

• 🌏 Asia-Pacific excluding Japan: +2.2%  (vs. exp. ~+5.7%) — slowdown from +8% in Q4; Mainland China maintains slight growth, Korea remains solid, rest of the region weaker; flight disruptions impacted Singapore and Thailand

• 🕌 Middle East (other): -5.9%  — since March, the war has had a drastic impact; sales in luxury malls in the UAE, Kuwait, Qatar, and Bahrain have plummeted; turnover in Dubai malls fell by 40% in March; this region was Hermès’ fastest-growing market throughout 2025

📦 Segment results (at constant exchange rates)

• 🤤  Leather Goods and Saddlery: +9.4% (€1,849 million) — strong demand for collections and growing production capacity; the season’s hits include the Faubourg Express bag and the Collier d’attelage; in April, the 25th leather workshop opened in Loupes (Gironde)

• 👗 Clothing and accessories: +0.4% (€1,076 million) — flat organic growth; the Fall/Winter 2026 women’s collection show at the Garde Républicaine was very well received

• 🧣 Silk and textiles: +7.8% (€257M) — solid growth driven by constantly renewed creativity; the L'esprit s'envole scarf stands out

• 🏺 Other Hermès segments (jewelry, Home): +6.8% (€540M) — continued momentum; the Double Tour haute joaillerie event was held for the first time in Tokyo

• 💄 Perfumes and beauty: +0.2% (€127M) — sales stable; new releases: Musc Pallida in the Hermessence collection, Un Jardin sous la mer, and the first Plein Air foundation in 34 shades

• ⌚ Watches: -3.7%  (€135M) — a challenging environment, but Hermès is expanding its lineup; the H08 with a skeletonized titanium movement and the Arceau Samarcande with a minute repeater were unveiled at Watches & Wonders in Geneva; expansion of the manufactory in Le Noirmont by 2028.

• 📦 Other products: +3.6% (€86M) — manufacturing for third-party brands, John Lobb, Saint-Louis, Puiforcat

Source: Hermes Investor Relations

Despite these disruptions, Hermès maintained its long-term growth targets assuming stable exchange rates and, at the same time, repurchased over 31,000 of its own shares for €60 million in Q1. Axel Dumas, CEO, commented on the results in his characteristic style: “In a tense geopolitical environment, Hermès is staying the course, true to its long-term strategy.” The company maintains an operating margin exceeding 41%—a result no other luxury player is able to replicate. The next key date on the calendar is July 29, 2026 —the release of first-half results.

The Hermes (Euronext Paris) stock chart shows a strong uptrend since 2023, which accelerated in 2024 and peaked above €3,100 in early 2025, followed by a sharp price drop of over 11.85% in recent weeks. The EMA200 (orange line) has acted as dynamic support for most of the time since 2023, but since early 2025, the price has broken below it and is currently well below this average (the current EMA200 value is 2,059.72). The volume profile (on the left) shows a very distinct zone of high activity between approximately 1,800–2,300 EUR, with the highest concentration of tick volume around 2,000–2,100, which currently acts as a strong resistance/support zone following the decline. Since the peak in 2025, the price has been anchored around the VWAP level (black horizontal line), which has served as the market equilibrium for most of the time; currently, the price is below this line, confirming the dominance of sellers in the recent period.

Source: xStation