Hermès (RMS.PA) shares fell as much as 6.2% on Monday. A Kepler Cheuvreux analyst note predicted a margin contraction for the luxury brand's upcoming first-half results.
Analyst Charles-Louis Scotti anticipates a 100 basis-point contraction in the adjusted EBIT margin. He identified foreign exchange headwinds and underabsorption of fixed costs as the primary drivers. These forecasts place first-half profit and earnings per share estimates 4% below the market consensus.
The selloff triggered a broader decline across the luxury sector. A Goldman Sachs European luxury basket dropped by as much as 2.9%.
Separately, Jefferies lowered its price target for Hermès to €2,000 from €2,400. The firm maintained its Buy rating on the stock.