French luxury stocks diverge as Kering jumps, Hermes tumbles by double digits

LVMH Moet Hennessy Louis Vuitton SE

29/07/2026 12:36

Updates with share prices, milestones
** French luxury houses Kering and Hermes are on course for their biggest one-day share-price moves in years after their latest earnings reports sparked sharply contrasting investor reactions 
** Kering  PRTP.PA leaps over 14% after reporting quarterly results that beat expectations on both sales and recurring operating profit, prompting HSBC to upgrade the stock to "buy" from "hold"
** Hermes HRMS.PA, by contrast, plummets around 11% to its lowest since the beginning of 2023 after its quarterly update failed to convince investors a comeback is imminent
     ** "A tad better on profits, but a smaller sequential improvement vs peers," J.P.Morgan says of Hermes results 
** JPM adds that the slower pace of growth relative to rivals continues "to drive question marks" among investors about Hermes' growth trajectory over the short, medium and long term 
** One trader says Hermes' results showed "no indication of a fundamental rebound," adding that investors could find much cheaper alternatives, such as Kering
** Kering is "moving in the right direction", HSBC says, pointing to CEO Luca de Meo's focus on key priorities and efforts to reconnect with aspirational consumers, particularly at flagship brand Gucci
** If gains hold, Kering is on track for its best day since December 2008, reducing its year-to-date decline to around 5%
** Hermes is set to extend its losses for the year to more than 28% in its worst trading day in over 15 years
** Shares of French peer LVMH LVMH.PA are roughly flat, while Richemont CFR.S falls around 2% in Zurich and Moncler MONC.MI gains about 1.5% in Milan

(Reporting by Jakob Van Calster)
((jakob.vancalster@thomsonreuters.com))