Hermes Stock Prices Ripe For A Tumble?

by Deidre Woollard (RSS feed)
Dec 31st 2008 at 3:02PM

Even as the luxury market started to fall apart in the second half of this year, French luxury brand Hermes remained strong, almost freakishly so. While other luxury groups such as LVMH and PPR began to lag, the share price for Hermes is up 16.7% over the past year. But Forbes predicts that the company's currently level of profitability is not sustainable and that shares will start to fall next year. Most of the stock is held by the controlling family with approximately 30% freely traded. Rumors that Hermes will be sold have also boosted stock prices at various points although denials have always been speedily issued. The stock is still up so this is a good time to collect gains and perhaps move on. In the Forbes article John Guy, an analyst with MF Global picks Burberry as a smart bet for the future.

At least the right Hermes bag is still a good investment...

Tags: hermes, investing, money, stocks