Hermès Faces Rare Sell Calls as Growth Slows

Hermès International SCA, the Paris-based luxury giant known for its iconic Birkin and Kelly handbags, has received its first sell ratings in over a year. Analysts at Goldman Sachs and UBS argue that the company’s long streak of double-digit growth is winding down. Goldman Sachs, led by Erwan Rambourg, highlighted weaker performance in non-leather products, which appeal more to aspirational buyers. The firm expects Hermès’ growth to slow, though it may still outpace its peers.

The downgrades come as Hermès’ shares have plunged more than 40% this year, on track for their worst annual performance since the company went public in 1993. The stock’s valuation premium over luxury competitors has shrunk sharply, now trading at about 27 times forward earnings, less than half its multiple earlier in 2025. Zuzanna Pusz of UBS noted increasing availability of Hermès products on the resale market, suggesting potential cracks in the brand’s tightly controlled supply strategy.

The next critical test for Hermès will be its third-quarter earnings report in mid-October. Analysts forecast full-year revenue growth of 6.82% at constant exchange rates, the slowest pace since 2020, when the pandemic disrupted the industry.