Bernstein Expects Hermès to 'Moderate' Price Hikes for Leather Goods in FY27

06:46 AM EDT, 09/29/2026 (MT Newswires) -- Bernstein expects Hermès (RMS.PA) to "moderate" leather goods price increases in 2027, aligning with analysts' view that global luxury brands must proactively address consumer affordability and value perception rather than waiting for China's economy to rebound. "Shrinking wallets and punchy price increases have started to place luxury brands and luxury goods out of reach. Brands need to avoid being perceived as 'products for somebody else' = out of reach, and out of mind. If consumers continue to fall further down, brands must either find ways to follow them - through price, mix, or categories (beauty, eyewear) - or risk becoming irrelevant," analysts said Monday after hosting a webinar with Autonomous' China Macrofinancial analyst Charlene Chu regarding the outlook for Chinese households and broader implications for global luxury sales. In the note focused on the international luxury goods sector, Bernstein said Hermès has "high-quality self-help" options to strengthen its positioning at the high end of the market, though executing its strategies will take time to materialize. Within this context, the research firm now expects 2027 organic sales growth of 7% for Hermès, against the previous 7.6% forecast and the consensus estimate of 7.7%, as Bernstein trimmed its growth forecast for the company's leather goods division. Analysts' 2027 EPS forecast also fell by 1%. Bernstein rates the stock at outperform, with an unchanged price target of 1,750 euros.