Hermès International shares fell sharply on Monday. Bernstein lowered its price target for the luxury firm to €1,750 from €2,150. The stock reached its lowest level since November 2022.
Subdued demand in China during the summer prompted the revision. Bernstein also trimmed its 2026 organic growth forecasts for the company. Analysts cited a lack of clear positive catalysts for the second half of the year.
Slowing discretionary spending in China is now impacting the highest tier of the luxury market. Bernstein maintained its outperform rating despite the lower price target. The firm suggests the brand's medium-term strength remains intact.