Hermès Slides 11.6% on China Slowdown, Dragging Euro Stoxx 50 Down 0.4%
Updated
Updated · XTB · Jul 29
Hermès Slides 11.6% on China Slowdown, Dragging Euro Stoxx 50 Down 0.4%
1 articles · Updated · XTB · Jul 29
Summary
Hermès shares sank 11.6% and were briefly suspended after investors looked past solid earnings to focus on slowing sales momentum in China and weaker demand in the Middle East.
€4.1 billion in second-quarter revenue rose 7% year on year and first-half recurring operating profit reached €3.4 billion with a 41% margin, but the stock's rich valuation amplified the market reaction.
A 9.5% drop in perfumes and cosmetics added to the pressure, even as Japan and the Americas posted double-digit sales growth and leather goods revenue climbed 10.2%.
The selloff weighed on broader European markets, pushing the CAC 40 down 0.7% and the Euro Stoxx 50 down 0.4%, while Brent crude near $90 a barrel added another drag on sentiment.
Strong bank earnings from UBS and Deutsche Bank offered only limited support, underscoring how a single luxury heavyweight can dominate regional trading when China demand is in doubt.