By
Bloomberg
Published
April 15, 2025
Hermès's market capitalization exceeded the rival LVMH, the conglomerate that once tried to buy from the coveted Birkin bag in a stealthy raid that shocked the French corporate world 15 years ago.
The assessment of Hermès International SCA reached € 243.65 billion ($ 276.3 billion) on Tuesday, briefly crossing the most valuable company of € 243.44 billion in the CAC 40 index of France.
The impressive investment in fortune occurs after LVMH fell up to 8.4% in Paris after the disappointing results of the first quarter in the deceleration of demand in China and the United States amid threats of intensive commercial war.
For Hermès, the movement claims its strategy to remain independent. In 2010, the LVMH and CEO billionaire CEO Bernard Arnault revealed that he had accumulated a silence in the famous silk scarf manufacturer.
The Arnault movement led to the Hermès family to join, pressing the man who once called “The Wolf in Cashmere” for his aggressive acquisitions of heritage brands to sell his actions a few years later.
LVMH, whose portfolio includes Christian Dior and Tiffany & Co., reported 2024 sales of € 84.7 billion and an operational gain of € 19.6 billion. Hermès recorded sales of € 15.2 billion with an operational gain of € 6.2 billion for the same period.
Hermès has resisted the recession of the demand for luxury products better than the rivals by serving the richest and cultivating a sense of finely calibrated exclusivity and handled scarcity.
The business model with supply restrictions has assured that the demand for its bags like The Birkin, named for the late British singer and actress Jane Birkin, and the Kelly, inspired by Princess Grace Kelly, exceeds what is offered.
These bags can sell around € 10,000 in Paris and obtain significantly higher prices in the resale market. Founded as harness manufacturer in 1837, Hermès benefits from a strong price power and long waiting lists for their products.
In contrast, LVMH's assessment can be disturbed by what analysts say it is a conglomerate discount, with assets like Sephora that enjoy lower margins than their cash cows brand, Louis Vuitton.
On Monday, LVMH published results of the first quarter that were very worse than expected in their key unity of fashion and leather articles. Hermès will publish its quarterly sales on Thursday.
While Arnault often dominates the richest list in the world, he currently occupies the fifth place in the Bloomberg billionaire index: the Hermès family, whose heir of sixth generation Axel Dumas directs the saddle, is the richest in Europe with an estimated fortune of approximately $ 171 billion from December.
In February, Hermès's assessment briefly crossed the symbolic level of 300 billion euros, but concerns about trade wars and rates have harmed the broader luxury sector.
