With a market cap of €243.65 billion, Hermès has dethroned its once-suitor LVMH, as its timeless exclusivity model shields it from luxury slowdown and trade war tremors.
Paris | April 15, 2025 — In a symbolic twist of luxury fate, Hermès International SCA has surpassed LVMH Moët Hennessy Louis Vuitton SE to become France’s most valuable company, marking the first time the maker of the iconic Birkin bag has eclipsed its once-hostile suitor.
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As of Tuesday, Hermès’ market capitalization touched €243.65 billion ($276.3 billion), narrowly overtaking LVMH’s €243.44 billion. The milestone puts Hermès at the top of the CAC40 index and among Europe’s top three companies, trailing only SAP SE and Novo Nordisk.
💼 A Rivalry Forged in Silk and Power
The feat is especially significant given LVMH’s 2010 stealth takeover attempt, when CEO Bernard Arnault amassed shares in Hermès without warning, prompting a fierce defense by the Hermès family. Arnault, dubbed “the wolf in cashmere,” was eventually forced to sell his stake.
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Today’s market flip underscores Hermès’ strategic choice to remain fiercely independent and exclusive — a model built on scarcity, craftsmanship, and legacy, unlike LVMH’s broader and more cyclical portfolio.
📉 Why LVMH Tumbled
LVMH shares plunged 8.4% after disappointing Q1 results revealed slowing demand in the US and China — markets critical to luxury sales — amid trade war concerns.
The diversified giant behind Dior, Tiffany & Co, and Sephora faces what analysts call a “conglomerate discount,” where high-margin brands are offset by lower-performing units.
💎 Hermès: Luxury’s Fortress in Turbulent Times
Hermès has weathered the luxury slump better than peers by sticking to its core strategy:
- Low-volume, high-demand production
- Unmatched brand exclusivity
- Price stability and long waitlists for products like the Birkin and Kelly bags
These bags routinely sell for €10,000+ in Paris, and much more in secondary markets, maintaining Hermès’ supply-constrained allure even in volatile times.
“In uncertain environments, people tend to go for quality and safety. In luxury, Hermès is clearly that,” said Jelena Sokolova, Morningstar analyst.
📊 LVMH vs Hermès: By the Numbers
| Metric | LVMH | Hermès |
|---|---|---|
| 2024 Revenue | €84.7 billion | €15.2 billion |
| 2024 Operating Profit | €19.6 billion | €6.2 billion |
| Market Cap (April 15, 2025) | €243.44 billion | €243.65 billion |
| Key Brands | Dior, Tiffany, Louis Vuitton | Birkin, Kelly, Silk Scarves |
👑 Rich Lists Rewritten
- Axel Dumas, Hermès’ CEO and sixth-generation heir, leads Europe’s wealthiest family, with a combined fortune of $171 billion.
- Bernard Arnault, once at the top of the global rich list, now ranks fifth, according to Bloomberg.
📉 Trade War Ripple Effect
Luxury stocks have suffered amid concerns of Trump-era tariffs escalating into a full-blown US-China trade war. Hermès briefly crossed the €300 billion mark in February, but sector-wide concerns have cooled valuations.
Hermès will report its Q1 earnings on Thursday, with analysts watching to see whether it can maintain momentum as the industry reels from global economic headwinds.
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Hermès market cap, Hermès vs LVMH, Birkin bag demand, French luxury market, LVMH share price drop, Trump tariffs impact, Europe’s most valuable companies, luxury goods stocks 2025, Axel Dumas, Bernard Arnault takeover history