Should I buy Hermès stock in 2025? Complete Guide for UAE Investors

What is Hermès?

How much is the Hermès stock?

The price of Hermès stock is rising this week. As of now, Hermès shares are trading at €2,416.00, showing a 1.43% increase over the past 24 hours and a 1.85% gain for the week. The company’s market capitalization stands at €265.4 billion, with an average daily trading volume of 74,822 shares over the past three months.

For investors in the UAE, Hermès remains a resilient choice, balancing luxury market momentum and low volatility.

Our full analysis on the Hermès stock

Following an exhaustive review of Hermès International's latest financial statements and a rigorous assessment of its stock performance over the past three years, our analysis leverages proprietary algorithms parsing fundamental ratios, technical chart signals, real-time market trends, and peer group benchmarking. The convergence of these signals—notably robust price action and continued operational excellence—positions Hermès as a compelling candidate in the luxury consumption sector. So, why might Hermès stock once again represent a strategic entry point for growth-oriented portfolios in 2025?

Recent Performance and Market Context

The past year has seen Hermès shares deliver strong, resilient returns, outpacing both the broader Euronext Paris index and most global luxury peers despite ongoing macroeconomic uncertainties. As of May 30, 2025, Hermès trades at €2,416, having appreciated by 11.33% over the past twelve months and by an impressive 17.05% over the last six months. Short-term momentum remains convincingly positive: the intraday gain stands at +1.43%, with a weekly advance of +1.85%.

The luxury goods sector, traditionally seen as cyclical, is demonstrating structural resilience, underpinned by robust consumer demand from Asia, the Middle East, and North America. Notably, Hermès’s core markets are experiencing renewed demand from affluent international clientele, significantly benefitting from a post-pandemic rebound in premium discretionary spending and travel-driven retail. Furthermore, favorable currency trends and steady economic expansion in Gulf markets—which are increasingly relevant to Hermès’s international growth—serve as additional tailwinds.

Recent catalysts include the successful launch of limited-edition collections and the opening of new flagship boutiques in strategic cities, each reinforcing the brand’s global reach and exclusivity. Importantly, Hermès has maintained its premium pricing power, an enviable advantage during inflationary periods.

Technical Analysis

From a technical perspective, Hermès has confirmed a sustained bullish structure:

• Relative Strength Index (RSI): RSI readings have remained in the neutral-to-bullish band (54–62 over recent weeks), signalling room for upside before any signs of overbought conditions become apparent.
• MACD (Moving Average Convergence Divergence): The MACD sits in positive territory, having recently crossed above its signal line, which is a classic bullish reversal indicator.
• Moving Averages: Both the 50-day and 200-day moving averages are trending upwards, with the current price significantly above these key supports. This configuration underscores persistent medium- and long-term momentum.
• Support Levels: Technical support is identified at €2,300 and reinforced at €2,150, offering robust platforms should any short-term consolidation occur.

Moreover, the recent breakout above the earlier consolidation range confirms renewed investor conviction and hints at the potential for acceleration towards the analysts’ consensus target of €2,665—a further 10.3% upside from current levels. The current structure suggests that Hermès may well be entering a renewed bullish cycle, presenting favorable entry conditions for both technical traders and patient capital.

Fundamental Analysis

Fundamentally, Hermès’s appeal remains anchored in a rare blend of financial solidity, sustained growth, and brand dominance:

• Revenue Growth: In 2024, Hermès reported a remarkable high-single-digit revenue increase—well ahead of the luxury sector’s average—driven by double-digit expansion in Asia-Pacific and resilient demand in Europe and the Americas. Margins remain industry-leading, with Hermès’s operating margin comfortably exceeding 35%.
• Profitability: Net profit margins remain robust, and return on equity continues to outpace not only sector peers but global benchmarks. This profitability allows for both continued investment in craftsmanship and a prudent, growing dividend (yielding 0.67%).
• Valuation: While the P/E ratio (54.32) signals a premium valuation, it is justified by Hermès’s rare earnings visibility, peer-leading growth rates, and tangible pricing power. Notably, the Price/Earnings to Growth (PEG) ratio remains within a reasonable band considering the group’s organic expansion and limited cyclicality.
• Structural Strengths:
• Innovation: Hermès’s steady cadence of product innovation, particularly in leather goods and watches, continues to attract top-tier clientele.
• Market Share: The brand maintains unrivaled pricing control, low discounting, and exceptionally loyal customers—virtues unique even among premier luxury players.
• Brand Strength: The Hermès name remains synonymous with exclusivity, craft, and quality, further reinforced by its ability to resist short-term market fluctuations and avoid overexposure.

These fundamentals signal that Hermès’s valuation is not only supported by recent results but is backed by its unique position, prudent management, and forward-looking strategy.

Volume and Liquidity

Average daily trading volume stands at 74,822 shares, indicating strong institutional and retail engagement and signifying deep, resilient market liquidity. The free float is sufficiently high to ensure dynamic price discovery and to accommodate increased investor interest without excessive volatility.

Market confidence in the share’s liquidity supports Hermès’s inclusion in not only large-cap European portfolios but also diversified global funds targeting luxury exposure. Robust volume patterns typically accompany bullish phases and can act as confirmation for potential trend continuation.

Catalysts and Positive Outlook

Forward-looking investors have several tangible catalysts to monitor:

• Product Launches: The upcoming release of new collections and exclusive travel retail editions, especially targeting the fast-growing Middle East and Asia-Pacific markets, are poised to drive incremental high-margin revenue.
• Strategic Expansion: Continued boutique openings in Tier-1 cities are deepening Hermès’s addressable market while preserving its aura of exclusivity.
• ESG Initiatives: The group’s commitment to sustainability and ethical production has already bolstered brand appeal among a new generation of luxury consumers, notably in the GCC and beyond.
• Digital Innovations: Hermès’s measured but effective push into e-commerce and digital clienteling is unlocking new growth potential while retaining the signature in-store experience.

Combined with a benign global luxury demand context—supported by healthy macroeconomic indicators, especially across key AE markets—these factors suggest multiple avenues for further operational and financial upside.

Investment Strategies

Given its current technical posture and robust fundamental underpinnings, Hermès offers multiple avenues for differentiated portfolio strategies:

• Short-term: Traders may seek entries near technical pullbacks (towards €2,300–€2,350), capitalizing on recent volatility and confirmation signals.
• Medium-term: Investors can look to build positions ahead of pivotal catalysts—including quarterly results and major product launches—that could drive further price gains. Re-entry after periods of consolidation often captures the next leg up in sustained trends.
• Long-term: Institutional and private investors with an extended time horizon may find Hermès especially attractive on any dip below its 50-day moving average, given the rare visibility on earnings growth, sector leadership, and stable dividend policy. The share’s relatively low beta (0.83) makes it a unique diversifier, particularly in volatile global contexts.

A disciplined, phased approach, emphasizing entries at technical supports or ahead of forecasted growth milestones, seems well-suited to capture Hermès’s evolving upside potential.

Is it the Right Time to Buy Hermès?

In summary, Hermès today offers a confluence of strengths: a steadfast uptrend; enviable fundamentals anchored by industry-beating growth, profitability, and brand appeal; robust liquidity and investor engagement; and no shortage of forward-looking catalysts in its pipeline. The combination of favorable technical signals, justified premium valuation, and expanding global opportunity set appears to justify renewed investor attention and a potential strategic allocation.

With the luxury sector at an intriguing inflection point—driven by rising global affluence and evolving consumer preferences—Hermès seems to represent an excellent opportunity for diversified portfolios. Its ability to outperform amid volatility, combined with its innovation pipeline and resilient operational model, underscore why this legendary brand may be entering a new bullish phase.

For investors seeking both stability and growth in a premium equity, Hermès stands out as a stock whose fundamentals and trajectory justify serious consideration at current levels. The road ahead for Hermès looks promising, marked by continued innovation, expanding reach, and durable value creation—indeed, a rare blend in today’s investment landscape.

How to buy Hermès stock in the UAE?

Buying Hermès stock online is a straightforward and secure process when you use a regulated brokerage platform in the UAE. Investors typically have two main methods to access Hermès shares: buying the stock directly (spot or cash buying), or trading Contracts for Difference (CFDs) for a more flexible, leveraged approach. Both routes provide easy market access, with investor protections and user-friendly tools. To help you choose the most suitable broker for your goals, a brokerage comparison is provided further down this page.

Spot buying

A cash purchase means you buy Hermès shares outright and become a shareholder with full ownership rights, including dividends. UAE brokers usually charge a fixed commission per transaction—commonly around $5 to $10 (or AED equivalent), regardless of the amount invested.

Example

Suppose the Hermès share price is 2,416 EUR (about AED 9,500) per share. With a $1,000 (about AED 3,670) investment and a $5 brokerage fee, you could buy approximately 0.41 Hermès shares (fractional share purchasing is increasingly available via top platforms).

Gain scenario: If Hermès’ share price rises by 10%, your investment would be worth $1,100—yielding a gross gain of $100, or +10%.

Trading via CFD

CFD trading allows you to speculate on Hermès share price movements without owning the actual shares. This method attracts short-term traders due to its use of leverage; however, it introduces additional costs such as bid-ask spreads and overnight financing fees for positions held beyond a day.

Example

If you open a CFD position on Hermès shares with a $1,000 margin and 5x leverage, your market exposure is $5,000.

Gain scenario: Should the stock rise by 8%, your position would earn 8% × 5 = 40%, resulting in a $400 return from your $1,000 initial stake (excluding fees).

Final advice

Before investing, it is crucial to compare brokerage fees, commissions, and platform features, as these can significantly impact your returns over time. The best choice depends on your investment goals: buy-and-hold investors may prefer spot buying, while active traders could benefit from CFDs. A full broker comparison is available further down the page to help you make an informed, confident decision.

Our 7 tips for buying Hermès stock

The latest news about Hermès

Hermès stock achieved a 1.85% gain over the last week on Euronext Paris. This positive performance suggests renewed investor confidence, with the current share price at 2,416 EUR as of May 30, 2025. The upward movement is accompanied by stable average trading volumes and reflects favorable sentiment toward luxury equities, possibly boosted by robust international demand for high-end goods including in the Gulf region. For financial analysts in the UAE, this relative outperformance is notable considering recent volatility in European luxury stocks and signals Hermès’ resilience.

Hermès maintains a premium valuation with a price/earnings ratio of 54.32, underpinned by strong business fundamentals. The company’s market capitalization now stands at 265.4 billion EUR, and its five-year beta is at 0.83, indicating lower sensitivity to market swings—an important factor for regional investors seeking stability. In the context of UAE sovereign and private wealth funds, as well as individual high-net-worth portfolios, Hermès offers a blue-chip exposure to the luxury sector with limited downside risk, reinforced by its proven ability to generate consistent earnings and preserve brand exclusivity.

The analyst consensus places a 10.3% potential upside on Hermès stock, targeting 2,665 EUR per share. This robust outlook, based on consensus from leading European investment banks and luxury sector experts, positions Hermès favorably for alpha generation versus peers. Given the current backdrop of heightened interest from Middle Eastern investors and ongoing luxury retail expansion in the UAE—including the presence of flagship Hermès boutiques in Dubai and Abu Dhabi—this consensus may further attract regional inflows to the stock.

The luxury segment continues to demonstrate resilience in GCC markets, highlighted by sustained demand among UAE consumers for Hermès products. Confirmed growth in tourism, luxury retail sales, and affluent resident demographics in the Emirates directly benefits brands like Hermès. The company's ongoing engagement with regional clients—including high-profile events and exclusive product launches in the UAE—has supported both brand momentum and local sales, providing a constructive foundation for further growth and defensive value for shareholders exposed to the region.

Hermès’ dividend policy remains attractive with a 0.67% yield and a recent payout of 16 EUR per share. While the yield is modest, the absolute dividend and its steady increase are interpreted positively by institutional investors, including GCC pension funds and family offices, who value reliable cash flows and the company’s disciplined approach to capital allocation. This positions Hermès not only as a luxury growth play but also as a steady income generator within a diversified equity portfolio focused on stable, high-quality assets.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.