Potential Changes in the Bullish Outlook for Hermès (ENXTPA:RMS) Amid Evolving Birkin Premiums and Emerging Handbag Investment Funds

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Dec 20 2025

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Source: Yahoo Finance

Resale Premiums Decline: Average resale premiums for Hermès Birkin and Kelly bags have decreased from 2.2 times retail prices in 2022 to 1.4 times, amidst a contraction in the global luxury market and a loss of customers.
Investment Funds and Market Risks: The launch of new funds focused on trading Hermès bags indicates their status as financial assets, but the volatility in secondary-market pricing raises concerns about brand dilution and the risks associated with luxury as an asset class.
Hermès Financial Performance: Hermès reported higher sales of €8,034 million but a slight decrease in net income to €2,246 million, highlighting the challenges of maintaining profitability amid a softer luxury market and fluctuating bag resale prices.
Future Projections and Valuation: Hermès is projected to achieve €20.3 billion in revenue and €6.3 billion in earnings by 2028, but varying fair value estimates among analysts suggest potential risks to its exclusivity and long-term pricing power.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.