In a significant shift for the global luxury market, French brand Hermès has officially overtaken LVMH to become the world’s most valuable luxury company. This milestone comes as LVMH reported an unexpected 7.8% drop in its share value following disappointing first-quarter sales.
Hermès now boasts a market capitalisation of $276.3 billion USD, surpassing LVMH Moët Hennessy Louis Vuitton SE’s $274.5 billion USD. Bloomberg reports that this valuation places Hermès third among Europe’s most valuable publicly listed companies, trailing only software giant SAP SE and pharmaceutical heavyweight Novo Nordisk A/S.
A Resilient Brand in Uncertain Times
The market’s confidence in Hermès, even amid economic headwinds, signals the strength of its business model. Morningstar analyst Jelena Sokolova told Bloomberg that Hermès has proven “more resilient in certain environments, which are more uncertain, and that’s exactly what is happening right now.”
While LVMH struggled with a 3% decline in Q1 sales — missing analysts’ projected 2% growth — Hermès continued to shine. In 2024, the brand recorded a robust 13% annual sales increase, with an 11.3% jump noted in the third quarter alone.
From Takeover Target to Industry Leader
This achievement also echoes a dramatic chapter from 2010 when LVMH’s CEO Bernard Arnault shocked the luxury world by acquiring a 17% stake in Hermès. The move, widely viewed as a hostile takeover attempt, triggered a fierce response from the Hermès family, who successfully forced Arnault to sell the shares. At the time, the family famously referred to him as “the wolf in cashmere.”
Today, Hermès stands not only as a symbol of heritage craftsmanship but also as Europe’s wealthiest family business. Axel Dumas, a sixth-generation heir, continues to lead the house, overseeing a fortune estimated at $171 billion USD as of December 2024.
With this new title, Hermès not only dethrones its former suitor but also reinforces its reputation as the most resilient and desirable name in luxury fashion.