Goldman and UBS recommended selling Hermès shares. The stock was among the top performers in the luxury sector.

Hermès shares received two new “sell” recommendations at once—from Goldman Sachs, one of Wall Street’s leading firms, and UBS, Switzerland’s largest bank. This marks the first time in more than a year that the stock has been given a negative rating. Analysts at the banks warned that the era of impressive growth for the maker of Birkin bags is coming to an end, according to Bloomberg. The company’s stock has posted its worst performance in more than 30 years so far this year.

Goldman Sachs analysts, led by Erwan Rambour, identified the company’s weakness in non-leather categories as a key issue: these categories are more susceptible to shifts in the sentiment of luxury-seeking consumers, according to Bloomberg. “While we believe the company’s revenue growth will likely remain slightly above that of its competitors, we expect it to be more subdued than investors are accustomed to,” Rambour noted.

Goldman Sachs has maintained its price target at €1,350. This target implies a gain of only 4% for the stock relative to its most recent closing price.

UBS analyst Zuzanna Push believes that Hermès’ reputation as one of the most stable players in the luxury sector—a reputation built on long waiting lists for Kelly and Birkin bags and strict supply controls—has begun to crack. According to Push, this is due to the increased availability of the brand’s products on the resale market. The bank sharply lowered its target price for the stock from €1,695 to €1,168, implying a 10% decline from the close on October 2.

The next test for the company will be the release of Hermès’ third-quarter financial results in mid-October. Analysts surveyed by Bloomberg expect full-year revenue, on a constant-currency basis, to rise by 6.82%. This would mark the slowest growth rate since 2020, when the industry was hit by pandemic-related store closures, Bloomberg notes.

Hermès shares fell 3% during trading in Paris on October 5. Compared to the start of 2026, they are trading more than 40% lower. This has brought the year-to-date decline to more than 40%. This is the worst annual performance for the stock since the company went public in 1993, Bloomberg noted.

At the same time, in 2025, the brand’s stock was among the best performers in the luxury sector, as Hermès delivered sales growth despite an overall market downturn. This even allowed the company to briefly surpass LVMH—owner of Louis Vuitton and Christian Dior—in terms of market capitalization last April.

In August 2026, RBC Capital downgraded its recommendation on Hermès shares from “Outperform” (above the market, equivalent to a “buy” rating) to “Sector Perform” (in line with the market, equivalent to a “hold” rating). On Monday, October 5, RBC Capital reaffirmed its price target of €1,600 but lowered its revenue growth forecasts for the luxury brand, as well as its earnings estimates for 2027–2028.

11 out of 23 analysts covering Hermès stock recommend holding it in their portfolios. Ten advise buying, and only two recommend selling.

This article was AI-translated and verified by a human editor