Summary

• 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.
• Hermès trades at a 38x PE, well below its 10-year average of 50x, supporting a 10-year CAGR scenario of 11–17% even with conservative assumptions.

A Collapse Rarely Seen in History

In October 2025, I published a buy rating for Hermès (HESAY), and since then the stock collapsed a further 25%. However, as I’ll show you, its fundamentals remain solid, which

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of HESAY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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